Nassef Sawiris’ Fertiglobe records growth in Q1 2021, eyes Abu Dhabi listing

Egyptian billionaire Nassef Sawiris’ Fertiglobe has announced a potential move to list on the Abu Dhabi Stock Exchange. The company reiterated on May 5 that it has started preparations for an IPO in Abu Dhabi, subject to market conditions. The latest business update appeared in Fertiglobe’s report for Q1 2021.

As of April 12, Reuters reported that Fertiglobe selected First Abu Dhabi Bank, HSBC and Citigroup to work on the IPO.

Sawiris’ OCI N.V. controls a 58-percent stake in the fertilizer producer, while the Abu Dhabi National Oil Company (ADNOC) holds a 42-percent share. Sawiris is Fertiglobe’s CEO and Sultan Ahmed Al Jaber serves as the company’s chairman.

Sawiris currently ranks as Africa’s second richest man on Forbes 2021 billionaire list behind Nigeria’s Aliko Dangote.

Q1 report

According to its Q1 2021 report, the company has recorded significant growth so far this year compared to 2020. Revenues rose 38 percent to $1.12 billion, and adjusted EBITDA* increased 134 percent to a record $452 million for the quarter compared to the same period last year.

Fertiglobe’s adjusted net profit in the quarter was $94 million compared to an adjusted net loss of $82 million in Q1 2020. The report indicated the company’s net debt is $3.4 billion as of March 31, down $306 million from Dec. 31, 2020.

The Abu Dhabi-based fertilizer giant was formed in 2019 after OCI and ADNOC combined their ammonia and urea assets.

Fartiglobe stated that it is the largest global exporter of nitrogen fertilizer and the largest nitrogen producer in the Middle East and North Africa. Its combined production capacity is 6.5 million tonnes of urea and merchant ammonia at its four subsidiaries in Egypt, the United Arab Emirates and Algeria.

*EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization