OCI N.V., the global producer and distributor of nitrogen and methanol products led by Egyptian billionaire Nassef Sawiris, has announced plans to distribute a semi-annual cash return of $730 million to its shareholders in April 2023.
According to its third-quarter earnings report, the distribution will include a base of $200 million with respect to the period ending Dec. 31. This follows total cash distributions of $1.1 billion in 2022, including a $740 million distribution in October and a $320-million distribution in June.
Sawiris, who is the richest man in Egypt with a net worth of $6.93 billion, according to the Bloomberg Billionaire Index, owns a 38.8-percent stake in OCI N.V. This stake has contributed significantly to his wealth over the years.
OCI N.V. has experienced strong growth in recent times, with revenue increasing 82 percent from $4.1 billion in the first nine months of 2021 to $7.5 billion in the same period of 2022. This growth has been driven by higher selling prices year-on-year for all products, including ammonia, urea, and nitrates. As a result, the company’s net profit reached a record $1.4 billion, up from $284.4 million the previous year.
This stellar performance builds on its previous earnings, especially in 2021 when it achieved considerable commercial, operational, organizational, and strategic milestones, resulting in a record year for the company and the first dividend to shareholders of $350 million.
OCI N.V. has also developed a strong value creation logic, with clear capital allocation targets, a focus on strategic partnerships and low-capex solutions, and conservative pricing assumptions for emerging products. In total, the company has created $6.3 billion in value, of which 63.7 percent has been redistributed.
In order to distribute the semi-annual cash return of $730 million in 2023, OCI N.V. will hold an extraordinary shareholders meeting in early 2023 to request shareholder approval for the distribution through repayment of capital.
The company is committed to maintaining a robust and disciplined capital allocation policy while pursuing value-accretive ESG and other growth opportunities.
