Nassef Sawiris, Egypt’s richest man and one of Africa’s richest billionaires, has recorded a €1.21-billion ($1.27 billion) boost in his net worth since the start of the year from his stake in OCI N.V., a Netherlands-based fertilizer producer.
Based in the Netherlands, OCI N.V. is a global producer of natural gas-based chemicals that produces nitrogen fertilizers, fuels, methanol and other natural gas-based products for agricultural, transportation and industrial customers worldwide.
With a present production capacity of about 16.2 million metric tonnes in the Netherlands, the United States, United Arab Emirates, Egypt and Algeria, the company ranks among the world’s largest nitrogen fertilizer producers.
The billion-dollar increase in the market value of Sawiris’ 38.9-percent stake in OCI N.V. can be attributed to the company’s year-to-date gains, as market participants expect the Netherlands-based fertilizer producer to benefit from the rise in nitrogen fertilizer prices and the prices of other commodities that it produces as a result of the Ukraine-Russia conflict.
Shares in the Dutch company have increased from a price of €23.02 ($23.99) per share at the start of the year to €37.96 ($39.55) per share at the time of writing this report, representing a total gain to shareholders of 64.9 percent.
As a result of the double-digit increase in OCI N.V. shares, the market value of Sawiris’ 38.9-percent stake has increased from €1.88 billion ($1.96 billion) at the start of the year to €3.1 billion ($3.23 billion) at the time of writing.
This amounts to a total gain of €1.21 billion ($1.27 billion) for the Egyptian billionaire, who is one of Africa’s wealthiest businessmen.
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.
