Egyptian billionaire Nassef Sawiris’ OCI N.V. posts $392-million loss in 2023

OCI N.V., the world’s leading producer and distributor of green methanol, led by Egyptian billionaire businessman Nassef Sawiris, saw its full-year 2023 results marred by a $392-million net loss and a steep decline in revenue.

Revenue plunged 48.3-percent year-on-year to $5.02 billion, down from $9.71 billion in 2022. This decline is attributed to lower global nitrogen pricing and a reduction in natural gas prices in Europe and the US following the exceptional highs of 2022.

Exacerbated by rising operating costs in a challenging inflationary environment, OCI N.V.’s operating profit tumbled 88 percent to $354.7 million, compared to $3 billion in 2022. This translated to a net loss of $392 million for the year, a stark reversal from the $1.24 billion net income reported in the prior year.

OCI N.V. divests assets in strategic shift

Based in the Netherlands, OCI N.V. is a global powerhouse in natural gas-based chemicals, catering to agricultural, transportation, and industrial sectors worldwide. Despite the financial challenges, the company remains committed to strategic maneuvers to uphold value and streamline operations.

Under the leadership of Sawiris, OCI N.V. executed pivotal agreements in December 2023 to divest its holdings, aimed at leveraging early investments and optimizing subsidiary portfolios. The company finalized a deal to divest its entire stake in Fertiglobe, resulting in a 50-percent sale of its Fertiglobe shares to Abu Dhabi National Oil Company P.J.S.C. for a total consideration of $3.62 billion.

Additionally, OCI N.V. concluded the full exit and monetization of its equity stake in OCI Nitrogen Iowa by striking a deal with Koch Ag & Energy Solutions for a purchase price consideration of $3.60 billion, effectively discontinuing a production capacity of 6.11 million metric tonnes.

Leadership and future prospects

Nassef Sawiris, the visionary leader at the helm of OCI N.V., remains steadfast in navigating the company through turbulent waters. Ranked as Egypt’s wealthiest individual and Africa’s fourth-richest person, Sawiris owns a substantial 38.8-percent stake in OCI N.V., presently valued at $2.27 billion.

Despite the fiscal challenges encountered in 2023, OCI N.V. maintains a global production capacity of approximately 10.71 million metric tonnes, underscoring its continued dominance in the market. With operations spanning the Netherlands, the United States, United Arab Emirates, Egypt, and Algeria, the company reaffirms its commitment to innovation and sustainability in the production of green methanol and natural gas-based products.

Despite a turbulent fiscal year, its strategic initiatives to divest holdings and streamline operations reflect a proactive approach to mitigate financial downturns. Under the leadership of Sawiris, the company remains poised to navigate challenges and capitalize on emerging opportunities in the global marketplace.