Egyptian billionaire Nassef Sawiris-linked Fertiglobe posts $1.07 billion in profit in 9M 2022

Fertiglobe, a leading seaborne urea and ammonia exporter linked to Egyptian billionaire Nassef Sawiris, saw its earnings more than triple in the first nine months of its 2022 fiscal year, with profits exceeding $1 billion due to higher price levels and increased fertilizer demand.

Fertiglobe is a 58-42 percent joint venture between OCI N.V., a leading global nitrogen and methanol product manufacturer and distributor founded by Sawiris, Egypt’s richest man, and the Abu Dhabi National Oil Company (ADNOC).

With a production capacity of 6.7 million tonnes of urea and merchant ammonia and four subsidiaries in the UAE, Egypt, and Algeria, the company is the world’s largest urea and ammonia seaborne exporter and the largest nitrogen fertilizer producer in the Middle East and North Africa.

According to figures in the group’s recently published financial statement, its profit between January and September 2022 rose by 218 percent to $1.07 billion, up from $336.2 million during the same period last year.

The hike in earnings was driven by an 87-percent increase in revenue from $2.12 billion to $3.97 billion during the period under review, owing to higher urea and ammonia prices caused by Russia’s invasion of Ukraine, which caused a significant supply disruption.

According to Ahmed El Hoshy, CEO of Fertiglobe, the group delivered the solid results thanks to a rise in urea and ammonia prices compared to the same period last year, supported by tight market balances, outweighing the typical seasonal slowdown in the third quarter of 2022.

Looking ahead, Hoshy added that as demand increases in key import markets ahead of spring application, Fertiglobe’s order book in Bangladesh, Australia, and Europe remains robust, providing the group with good visibility for the fourth quarter of 2022 and the upcoming season in the first half of 2023.

As a result of the strong financial performance, Hoshy stated that the company may pay out $700 million in minimum cash dividends in the second half of 2022, bringing its total dividends for 2022 to at least $1.45 billion if the payout is approved.