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Nassef Sawiris, Egypt’s richest man, is one of the few billionaires who made impressive gains in their well-diversified portfolio of investments during a month marked by economic disruptions and sanctions, geopolitical disruptions, and export bans.
Sawiris, who sits on the board of leading sportswear manufacturer Adidas and owns a significant six-percent stake in the company, saw his net worth increase by $1.2 billion in May, bringing his fortune to more than $7 billion.
According to the Bloomberg Billionaires Index, Sawiris’ net worth grew by $1.25 billion from $6.25 billion on May 1 to $7.45 billion at the end of the month.
His net worth has increased by $1.25 billion due to an increase in the market value of his 38.9 percent stake in OCI N.V., a global producer of natural gas-based chemicals for agricultural, transportation, and industrial customers worldwide.
The billion-dollar increase in the market value of his stake in OCI N.V. comes as market participants anticipate that the Netherlands-based fertilizer producer will benefit from the rise in nitrogen fertilizer prices and the prices of other commodities that it produces as a result of the Russia-Ukraine crisis.
As of press time on June 1, shares in OCI N.V. were trading at €34.44 ($36.7) per share, up 45.8 percent since the start of the year, with Sawiris’ 38.9-percent stake valued at $2.44 billion.
OCI N.V. reported a 246-percent increase in net income in the first quarter of 2022, from $102 million in the first quarter of 2021 to $354 million, driven by a 108-percent surge in its revenue above $2.3 billion due to higher volumes and selling prices.
The group revealed that its outlook remains positive until at least 2024, providing strong support for nitrogen prices to remain above historical averages.
This expectation is supported by decade-high crop price futures and healthy farm economics, which drive strong demand for nitrogen fertilizers and high European gas price futures, which, in turn, set a higher price floor for the medium term and a multiyear structural tightening of supply.
