Q3 2023 Results Press Release
Fertiglobe Reports Q3 2023 Revenues of $525 Million; Announces
Dividends of $275 Million for H1 2023
• Q3 2023 revenues and adjusted EBITDA at $525 million and $199 million, respectively. Adjusted net profit and
free cash flows during the quarter were $41 million and $126 million, respectively
• Third quarter own-produced sales volume up 8% Y-o-Y driven by 10% higher own-produced urea sales volumes
• 9M 2023 revenues and adjusted EBITDA at $1.8 billion and $715 million, respectively. Adjusted net profit and
free cash flows during the quarter were $261 million and $458 million, respectively
• Announces dividends of $275 million for H1 2023, demonstrating sustained commitment to generating attractive
shareholder returns
• Cost optimization program is on track and expected to realize its targeted $50 million run rate savings by the
end of 2024
• Sustainability-focused projects are advancing, with Fertiglobe, alongside ADNOC, piloting the deployment of
the world’s first modular CycloneCC carbon capture unit at our UAE facilities, with potential for broader future
deployment
• Market outlook remains positive with nitrogen prices bottoming in late Q2 2023/early Q3 2023; ammonia and
urea prices are now up ~150% and ~35%, respectively, from their trough levels, supported by demand recovery
and tightening supply. Fertiglobe's short-term outlook is further underpinned by a strong order book for ammonia
and urea sales at higher prices for the remainder of the year
Abu Dhabi, UAE – November 07, 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between
ADNOC and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest
nitrogen fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in
sustainable ammonia, today reported Q3 2023 revenues of $525 million, adjusted EBITDA of $199 million,
adjusted net profit of $41 million, and free cash flows of $126 million. Own-produced sales volumes rose by 8%
for the third quarter relative to the same period last year, driven by 10% higher own-produced urea sales
volumes. For the nine-month period ended 30 September 2023, the Company reported revenues of $1.8 billion,
adjusted EBITDA of $715 million, adjusted net profit of $261 million, and free cash flows of $458 million.
Fertiglobe’s board of directors approved dividends of $275 million for H1 2023, equivalent to 12 fils/share. The
Company’s healthy free cash flow conversion and strong balance sheet (net cash position of $28 million or 0.0x
net leverage / LTM adjusted EBITDA as of 30 September 2023) enable it to maintain dividend payments while
investing in value accretive growth projects.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“Despite the traditional summer lull for fertilizer sales, we saw nitrogen prices maintain their positive momentum
in Q3, driven by tightening markets on planned and unplanned supply disruptions, restocking demand, as well
as expectations of reduced exports from China. Nitrogen prices have increased significantly from their troughs
in the second and third quarters, and we expect the benefits from these increases to materialize in the fourth
quarter. The short-term outlook is further underpinned by a strong order book for ammonia and urea sales in Q4
2023. In the medium to longer term, the nitrogen outlook remains favourable, with limited incremental supply
additions over the next several years, healthy farm economics, and elevated energy prices raising marginal cost
floors, particularly going into the winter season.Q3 2023 Results Press Release
We are pleased to note that our own-produced Q3 2023 sales volumes were up 8% year-on-year, primarily due
to 10% higher own-produced urea sales volumes. The expected recovery in demand ahead of the spring
application season in the Northern Hemisphere should continue to support prices going in Q4 2023, and
Fertiglobe remains ideally positioned to serve key import markets from our strategically located facilities.
In the third quarter, nitrogen prices reflected tighter market balances due to record low inventory levels, healthy
demand from key importing regions, restrictions on Chinese urea exports, and supply disruptions.
Alongside ADNOC, we recently announced the pilot deployment of the world’s first modular CycloneCC carbon
capture unit at our Fertil plant in the UAE, with the potential for broader deployment across our operations, if
successful. Looking ahead, we are committed to leveraging our state-of-the-art ammonia facilities and global
distribution infrastructure to expand our low-carbon ammonia capacity as part of our commitment to reducing
the carbon footprint of our operations and meeting increasing demand for low-carbon hydrogen and ammonia.”
Cost savings
Fertiglobe has recently launched initiatives to further optimize its cost structure and reinforce its top quartile cash
cost positioning, targeting $50 million in recurring annualized savings by the end of 2024. Key focus areas include
enhancements to the operating model, improvements in logistical capabilities, and increased capex and opex
efficiencies. Meanwhile, Fertiglobe's manufacturing improvement plan remains on track to deliver further
operational and cost efficiencies between 2023 and 2025.
Dividends and capital structure
Following quarter-end, Fertiglobe has reached commercial agreement with a group of its core relationship banks
on the terms of a new $500 million term facility, which is expected to be executed shortly. Once the facility is
executed, the proceeds will be used to refinance shorter term borrowings, further improving Fertiglobe’s maturity
profile and liquidity, in line with the company’s commitment to an investment grade capital structure.
As of 30 September 2023, Fertiglobe reported a net cash position of $28 million, compared to a net cash position
of $287 million as of 31 December 2022, allowing it to continue balancing the pursuit of future growth
opportunities with an attractive dividend pay-out. Fertiglobe announced the board of director’s approval of H1
2023 dividends at $275 million, equivalent to 12 fils per share, payable in the next few weeks.
-Ends-Q3 2023 Results Press Release
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in
sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant
ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen
fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports and
distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and
incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and was
formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi National Oil Company
(“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB”
and ISIN “AEF000901015. To find out more, visit: www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
investor.relations@fertiglobe.comQ3 2023 Results MD&A Report
Fertiglobe Reports Q3 2023 Results
Highlights:
•
Fertiglobe reported Q3 2023 revenues and adjusted EBITDA at $525 million and $199 million, respectively.
Adjusted net profit and free cash flows during the quarter were $41 million and $126 million, respectively.
•
Q3 2023 own-produced sales volume up 8% Y-o-Y driven by 10% higher own-produced urea sales volumes.
•
Fertiglobe's 9M 2023 revenues and adjusted EBITDA were $1,770 million and $715 million, respectively.
Adjusted net profit was $261 million in 9M 2023, while free cash flows were $458 million.
•
Fertiglobe announced dividends of $275 million for H1 2023, equivalent to 12 fils/share, and expects to
maintain healthy dividend distributions supported by its robust free cash flow generation and supportive
market fundamentals.
•
Fertiglobe has reached commercial agreement with a group of its core relationship banks on the terms of a
new $500 million term facility, which was 1.9x oversubscribed and is expected to be executed shortly. Once
the facility is executed, the proceeds will be used to refinance shorter term borrowings, further improving
Fertiglobe’s maturity profile and liquidity.
•
Fertiglobe is on track to realize its targeted $50 million run rate savings by the end of 2024.
•
Sustainability-focused projects are advancing, with Fertiglobe, alongside ADNOC, piloting deployment of the
world’s first modular CycloneCC carbon capture unit at our UAE facilities
•
Market Outlook:
◦
Nitrogen prices bottomed in late Q2 2023/early Q3 2023; ammonia and urea prices are now up ~150%
and ~35%, respectively, from their trough levels, supported by demand recovery and tightening supply.
Fertiglobe's short term outlook is further underpinned by a strong order book for ammonia and urea sales
at higher prices for the remainder of the year.
◦
Limited incremental capacity additions in the next several years, and elevated marginal production costs
provide a long term support for the market.
Abu Dhabi, UAE – November 07, 2023: Fertiglobe (ADX: FERTIGLB), the strategic partnership between
ADNOC and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest
nitrogen fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in
sustainable ammonia, today reported Q3 2023 revenue of $525 million, adjusted Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA) of $199 million, adjusted net profit of $41 million, and free cash flow
of $126 million. In Q3 2023, nitrogen prices reflected tighter market balances due to record low inventory levels,
healthy demand from key importing regions, restrictions on Chinese urea exports, and supply disruptions.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“Nitrogen prices maintained their positive momentum in Q3 2023, despite the traditional summer lull for fertilizers,
driven by tightening markets on a combination of planned and unplanned supply disruptions, restocking demand,
as well expectations of reduced exports from China. Nitrogen prices have increased significantly from their troughs
1Q3 2023 Results MD&A Report
in the second and third quarters, and we expect the benefits from these increases to materialize in the fourth
quarter. The nitrogen outlook in the medium to longer term remains favorable, with limited incremental supply
additions over the next several years, healthy farm economics, and elevated energy prices raising marginal cost
floors, particularly going into the winter season.
Our own-produced sales volumes were up 8% in Q3 2023 compared to Q3 2022, primarily due to 10% higher
own-produced urea sales volumes. A strong order book at the beginning of Q3 2023 resulted in a lag effect on
our realized prices vis-a-vis the moves in benchmark indices. The expected recovery in demand ahead of the
spring application season in the Northern Hemisphere should however continue to support prices in Q4 2023, and
Fertiglobe remains ideally positioned to service key import markets through its strategically located facilities.
In addition, Fertiglobe and ADNOC recently announced the pilot deployment of the world’s first modular
CycloneCC carbon capture unit at our Fertil plant in the UAE, with the potential for broader deployment across our
operations, if successful. Looking ahead, we are committed to leveraging our state-of-the-art ammonia facilities
and global distribution infrastructure to expand our low-carbon ammonia capacity as part of our commitment to
reducing the carbon footprint of our operations and meeting the increasing demand for low-carbon hydrogen
and ammonia.
Our healthy free cash flow conversion and balance sheet (0.0x net leverage / LTM EBITDA) allow us to continue
to balance dividend payments and selective growth spending on value accretive projects, and we are pleased
to announce the Board of Directors' approval of H1 2023 dividends of $275 million, equivalent to 12 fils/share,
payable in the next few weeks.
Further, I am pleased to note that the proactive management initiatives recently rolled out to bolster our free
cash generation across cycles, namely the Manufacturing Improvement Plan (MIP) and the cost optimization
program, are bearing fruit. Progress has been made on key focus areas of the cost optimization program, including
operating model transformation through launching the set-up of a shared service center in Egypt, advancing our
logistical capabilities and strategy, as well as capex and opex optimization.
Finally, I would like to extend my sincere appreciation to the Fertiglobe team for their steadfast commitment to
upholding top-tier safety, performance, and excellence benchmarks, which continues to be a pivotal driving force
behind our achievements, and for our future journey.”
Market Outlook
Fertiglobe believes the outlook for nitrogen markets remains positive, supported by crop fundamentals,
elevated European gas pricing and tightening supply dynamics in the medium term.
•
The nitrogen demand outlook for 2024 and beyond is underpinned by several factors:
◦
Despite the recent increase in nitrogen prices, farmer affordability levels remain robust (+26% since
Q3 2022), incentivizing nitrogen demand, and supporting the rebuilding of global grain stocks. Global
grain stock-to-use ratios remain below the 10 year average, and it will likely take at least until 2025 to
replenish stocks.
◦
Forward grain prices (US corn futures >$5.0/bushel to the end of 2025 compared to $3.7/bushel
during 2015 - 2019, and US wheat futures >$6.0-7.0/bushel, compared to $4.8/bushel during 2015
- 2019) are supporting farm incomes and incentivizing nitrogen demand to be above historical
trend levels.
2Q3 2023 Results MD&A Report
◦
Industry consultants expect a recovery in global ammonia trade from trough levels of ~17 million
tons in 2022 / 2023 towards historical levels of 19+ million tons per year, as demand for downstream
fertilizers, driven by improved affordability, recovers and industrial demand picks up.
◦
There is also significant potential incremental demand in the medium term from new applications for
ammonia such as its use as a fuel for power generation, especially in Japan and Korea. These two
markets alone could generate incremental demand for ammonia of 6 to 9 million tons by 2030.
•
Nitrogen supply is expected to be tighter over 2023 – 2027:
◦
No major large-scale greenfield urea supply additions are expected in the remainder of 2023
and 2024, with limited additions from 2025 to 2027, generating a global supply/demand gap of
~4 million tons.
◦
Chinese urea exports are expected to remain in the range of 3 – 4 million tons per year over the
medium term, as China continues to curb exports to ensure sufficient availability of urea for the
domestic market.
•
Feedstock pricing is expected to remain well above historical averages:
◦
2023 - 2025 forward European gas prices are c.$17/mmBtu (or c.3x higher than 2015-2019), with
higher prices anticipated for next winter. This implies marginal cost support levels for ammonia of
c.$770/t (including full impact CO2) and ~$605/t (excluding CO2).
Dividends and capital structure
As of 30 September 2023, Fertiglobe reported a net cash position of $28 million, compared to a net cash balance
of $287 million as of 31 December 2022, allowing the company to balance future growth opportunities and
dividend pay-out. Fertiglobe announced H1 2023 dividends at $275 million, equivalent to 12 fils/share, payable in
the next few weeks.
Following quarter-end, Fertiglobe has reached commercial agreement with a group of its core relationship banks
on the terms of a new $500 million term facility, which is expected to be executed shortly. Once the facility is
executed, the proceeds will be used to refinance shorter term borrowings, further improving Fertiglobe’s maturity
profile and liquidity, in line with the company’s commitment to an investment grade capital structure.
Cost savings
Fertiglobe has recently launched an initiative to further optimize its cost structure and reinforce its top-quartile
cash cost positioning, targeting $50 million in recurring annualized savings by the end of 2024. Key focus areas
include enhancements to the operating model, improvements in logistical capabilities and increased operational
cost and spend efficiencies. In addition, Fertiglobe's manufacturing improvement plan remains on track to deliver
operational and cost efficiencies by 2025.
3Q3 2023 Results MD&A Report
Consolidated Financial Results at a Glance1
Financial Highlights ($ million, unless otherwise stated)
$ million unless otherwise stated Q3 2023 Q3 2022 % Δ 9M 2023 9M 2022 % Δ
Revenue 525.1 1,317.9 (60%) 1,770.3 3,974.0 (55%)
Gross profit 153.8 583.9 (74%) 597.3 1,919.5 (69%)
Gross profit margin 29.3% 44.3% 33.7% 48.3%
Adjusted EBITDA 199.0 606.3 (67%) 714.5 2,000.9 (64%)
Adjusted EBITDA margin 37.9% 46.0% 40.4% 50.3%
EBITDA 191.8 609.3 (69%) 704.3 1,998.9 (65%)
EBITDA margin 36.5% 46.2% 39.8% 50.3%
Adjusted net profit attributable to shareholders 41.2 291.5 (86%) 260.5 1,090.7 (76%)
Reported net profit attributable to shareholders 39.5 291.6 (86%) 254.4 1,077.6 (76%)
Earnings per share ($)
Basic earnings per share 0.005 0.035 (86%) 0.031 0.130 (76%)
Diluted earnings per share 0.005 0.035 (86%) 0.031 0.130 (76%)
Adjusted earnings per share 0.005 0.035 (86%) 0.031 0.131 (76%)
Earnings per share (AED)
Basic earnings per share 0.017 0.129 (86%) 0.113 0.477 (76%)
Diluted earnings per share 0.017 0.129 (86%) 0.113 0.477 (76%)
Adjusted earnings per share 0.017 0.129 (86%) 0.113 0.481 (77%)
Free cash flow 126.4 189.3 (33%) 457.7 1,498.8 (69%)
Capital expenditure 33.1 23.5 41% 80.3 47.5 69%
Of which: Maintenance Capital Expenditure 28.8 18.4 57% 70.5 38.2 85%
30 Sep 23 31 Dec 22 % Δ
Total Assets 5,434.2 5,530.6 (2%)
Gross Interest-Bearing Debt 1,571.3 1,155.2 36%
Net Cash (28.0) (286.8) (90%)
Q3 2023 Q3 2022 % Δ 9M 2023 9M 2022 % Δ
Sales volumes (‘000 metric tons)
Fertiglobe Product Sold 1,470 1,364 8% 4,247 4,158 2%
Third Party Traded 40 336 (88%) 353 848 (58%)
Total Product Volumes 1,510 1,700 (11%) 4,600 5,006 (8%)
1 Unaudited
4Q3 2023 Results MD&A Report
Operational Highlights
Operational Performance Highlights:
•
12-month rolling recordable incident rate to 30 September 2023 of 0.13 incidents per 200,000 manhours.
•
Fertiglobe’s total own-produced sales volumes were up 8% to 1,470kt in Q3 2023 vs Q3 2022, driven by:
◦
Relatively unchanged ammonia own-produced sales volumes of 323kt in Q3 2023, and
◦
A 10% YoY increase in urea own-produced sales volumes to 1,144kt in Q3 2023 compared to 1,042kt
in Q3 2022 driven by higher production and lower ending inventories.
•
Traded third party volumes decreased 88% YoY to 40kt in Q3 2023, compared to 336kt in Q3 2022.
•
Total own-produced and traded third party volumes of 1,510kt were down 11% in Q3 2023 compared to
Q3 2022.
•
In 9M 2023, Fertiglobe’s total own-produced sales volumes were up by 2% to 4,247kt compared to 9M 2022,
driven by:
◦
A 6% decrease in ammonia own-produced sales volumes to 849kt from 902kt in 9M 2022, and
◦
A 4% increase in urea own-produced sales volumes to 3,388kt compared to 3,256kt in Q3 2022.
•
Traded third party volumes were down 58% YoY to 353kt in 9M 2023.
•
Total own-produced and traded third party sales volumes of 4,600kt in 9M 2023 were down 8% compared to
5,006kt in 9M 2022.
Product sales volumes
Sales volumes ('000 metric tons) Q3 2023 Q3 2022 % Δ 9M 2023 9M 2022 % Δ
Own Product
Ammonia 323 322 0% 849 902 (6%)
Urea 1,144 1,042 10% 3,388 3,256 4%
DEF 3 - n/m 10 - n/m
Total Own Product Sold 1,470 1,364 8% 4,247 4,158 2%
Third-Party Traded
Ammonia 32 134 (76%) 141 213 (34%)
Urea 8 202 (96%) 212 635 (67%)
Total Traded Third-party Product 40 336 (88%) 353 848 (58%)
Total Own Product and Traded Third-party 1,510 1,700 (11%) 4,600 5,006 (8%)
5Q3 2023 Results MD&A Report
Benchmark prices1
Q3 '23 Q3 '22 % Δ 9M 2023 9M 2022 % Δ Q2 '23 % Δ
Ammonia NW Europe, CFR $/mt 419 1,199 (65%) 498 1,258 (60%) 386 8%
Ammonia Middle East, FOB $/mt 310 923 (66%) 394 1,006 (61%) 256 21%
Granular Urea Egypt, FOB $/mt 422 775 (46%) 389 803 (52%) 335 26%
Granular Urea Middle East, FOB $/mt 380 626 (39%) 347 708 (51%) 302 26%
Natural gas TTF (Europe) $ / mmBtu 10.6 61.0 (83%) 12.9 41.3 (69%) 11.4 (7%)
Natural gas Henry Hub (US) $ / mmBtu 2.7 7.9 (66%) 2.6 6.8 (62%) 2.3 16%
1Source: CRU, MMSA, ICIS, Bloomberg
In Q3 2023, ammonia Middle East benchmark were down 66% YoY, while the urea Egypt benchmark price was
down 46%. Compared to Q2 2023, the ammonia Middle East benchmark was up 21%, while the urea Egypt
benchmark price was up 26%.
6Q3 2023 Results MD&A Report
Segment overview Q3 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 511.0 14.1 - 525.1
Gross profit 155.0 (1.2) - 153.8
Operating profit 130.9 0.5 (12.1) 119.3
Depreciation & amortization (70.7) (1.2) (0.6) (72.5)
EBITDA 201.6 1.7 (11.5) 191.8
Adjusted EBITDA 208.2 1.7 (10.9) 199.0
Segment overview Q3 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,020.6 297.3 - 1,317.9
Gross profit 571.0 12.9 - 583.9
Operating profit 549.5 12.9 (13.2) 549.2
Depreciation & amortization (59.7) - (0.4) (60.1)
EBITDA 609.2 12.9 (12.8) 609.3
Adjusted EBITDA 606.2 12.9 (12.8) 606.3
Segment overview 9M 2023
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 1,623.8 146.5 - 1,770.3
Gross profit 596.5 0.8 - 597.3
Operating profit 534.7 0.8 (40.0) 495.5
Depreciation & amortization (203.1) (2.9) (2.8) (208.8)
EBITDA 737.8 3.7 (37.2) 704.3
Adjusted EBITDA 746.5 3.7 (35.7) 714.5
Segment overview 9M 2022
Production and marketing of
$ million own produced volumes Third party trading Other Total
Total revenues 3,286.4 687.6 - 3,974.0
Gross profit 1,908.4 16.1 (5.0) 1,919.5
Operating profit 1,841.0 16.1 (43.1) 1,814.0
Depreciation & amortization (184.1) - (0.8) (184.9)
EBITDA 2,025.1 16.1 (42.3) 1,998.9
Adjusted EBITDA 2,022.1 16.1 (37.3) 2,000.9
7Q3 2023 Results MD&A Report
Financial Highlights
Summary results
Consolidated revenue decreased by 60% to $525 million in the third quarter of 2023 compared to the same
quarter in 2022, driven by lower selling prices as well as lower sales volumes due to a decline in third-party traded
volumes. Meanwhile, adjusted EBITDA declined by 67% YoY to $199 million in Q3 2023 compared to $606 million
in Q3 2022.
Q3 2023 adjusted net profit attributable to shareholders was $41 million compared to an adjusted net profit
attributable to shareholders of $292 million in Q3 2022. Reported net profit attributable to shareholders was
$40 million in Q3 2023 compared to a net profit attributable to shareholders of $292 million in Q3 2022.
Consolidated statement of income
$ million Q3 2023 Q3 2022 9M 2023 9M 2022
Net revenue 525.1 1,317.9 1,770.3 3,974.0
Cost of sales (371.3) (734.0) (1,173.0) (2,054.5)
Gross profit 153.8 583.9 597.3 1,919.5
Other income 0.3 3.0 1.9 3.0
SG&A (34.8) (37.6) (103.6) (107.6)
Other expense - (0.1) (0.1) (0.9)
Adjusted EBITDA 199.0 606.3 714.5 2,000.9
EBITDA 191.8 609.3 704.3 1,998.9
Depreciation & amortization (72.5) (60.1) (208.8) (184.9)
Operating profit 119.3 549.2 495.5 1,814.0
Interest income 4.2 0.3 9.9 1.2
Interest expense (31.8) (19.7) (84.5) (61.7)
Other finance (expense)/income 10.0 (36.7) (7.2) (15.5)
Net finance costs (17.6) (56.1) (81.8) (76.0)
Net profit before tax 101.7 493.1 413.7 1,738.0
Income tax (32.5) (73.6) (47.3) (228.3)
Net profit 69.2 419.5 366.4 1,509.7
Non-Controlling Interest (29.7) (127.9) (112.0) (432.1)
Net profit attributable to shareholders 39.5 291.6 254.4 1,077.6
Adjusted net profit attributable to shareholders 41.2 291.5 260.5 1,090.7
8Q3 2023 Results MD&A Report
Reconciliation to Alternative Performance Measures
Adjusted EBITDA
Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of
underlying performance of Fertiglobe’s operations. The main APM adjustments at the EBITDA level relate to the
movement in provisions, cost optimization program, insurance recovery, and pre-operating expenditures related to
projects during the quarter.
Reconciliation of reported operating income to adjusted EBITDA
$ million Q3 2023 Q3 2022 9M 2023 9M 2022 Adjustment in P&L
Operating profit as reported 119.3 549.2 495.5 1,814.0
Depreciation and amortization 72.5 60.1 208.8 184.9
EBITDA 191.8 609.3 704.3 1,998.9
APM adjustments for:
Movement in provisions - - 2.1 5.0 Cost of sales
Cost of sales and
Cost optimization program 6.6 - 6.6 - SG&A expense
Insurance recovery - (3.0) - (3.0) Other income
Pre-operating expenditures related to projects 0.6 - 1.5 - SG&A expense
Total APM adjustments 7.2 (3.0) 10.2 2.0
Adjusted EBITDA 199.0 606.3 714.5 2,000.9
Adjusted net profit attributable to shareholders
At the net profit level, the main APM adjustments relate to the impact on non-cash foreign exchange gains and
losses on USD exposure, other financial expense, as well as related impacts on non-controlling interest and tax.
Reconciliation of reported net profit to adjusted net profit
$ million Q3 2023 Q3 2022 9M 2023 9M 2022 Adjustment in P&L
Reported net profit attributable to shareholders 39.5 291.6 254.4 1,077.6
Adjustments for:
Adjustments at EBITDA level 7.2 (3.0) 10.2 2.0
Finance income
Forex loss/(gain) on USD exposure (10.9) 39.4 0.4 6.4 and expense
Other financial expense - 0.3 - 10.0 Finance expense
Uncertain tax
NCI adjustment / uncertain tax positions 7.0 (37.6) (2.9) (6.1) positions / minorities
Tax effect of adjustments (1.6) 0.8 (1.6) 0.8 Taxes
Total APM adjustments at net profit level 1.7 (0.1) 6.1 13.1
Adjusted net profit attributable to shareholders 41.2 291.5 260.5 1,090.7
9Q3 2023 Results MD&A Report
Free Cash Flow and Net Debt/(Cash)
Free cash flow before growth capex amounted to $126 million in Q3 2023, compared to $189 million in the same
period last year, reflecting performance for the quarter, working capital inflows, maintenance capital expenditures,
net interest, tax and lease payments.
Total cash capital expenditures including growth capex were $33 million in Q3 2023 compared to $24 million in Q3
2022, of which $29 million was related to maintenance capital expenditures, compared to $18 million in the same
period last year.
Reconciliation of EBITDA to Free Cash Flow and Change in Net Debt/(Cash)
$ million Q3 2023 Q3 2022 9M 2023 9M 2022
EBITDA 191.8 609.3 704.3 1,998.9
Working capital 5.1 (50.2) (1.7) (36.6)
Maintenance capital expenditure (28.8) (18.4) (70.5) (38.2)
Tax paid (14.2) (35.9) (47.0) (169.6)
Net interest paid (28.4) (16.8) (55.2) (39.8)
Lease payments (6.8) (3.7) (17.7) (10.7)
Dividends paid to non-controlling interests and withholding tax - (368.3) (83.1) (435.6)
Ecremage 7.7 73.3 28.6 230.4
Free Cash Flow 126.4 189.3 457.7 1,498.8
Reconciliation to change in net debt/(cash):
Growth capital expenditure (4.3) (5.1) (9.8) (9.3)
Other non-operating items (12.1) (3.9) 1.0 (6.8)
Net effect of movement in exchange rates on net debt/(cash) (15.1) 18.7 (5.7) (6.5)
Dividend to shareholders - - (700.0) (340.0)
Other non-cash items (0.6) (0.3) (2.0) (5.9)
Net Cash Flow in Net Debt/(Cash) 94.3 198.7 (258.8) 1,130.3
10Q3 2023 Results MD&A Report
Investor and Analyst Conference Call
On 7 November 2023 at 4:00 PM UAE (12:00 PM London, 7:00 AM New York), Fertiglobe will host a conference
call for investors and analysts. To access the call please dial:
International: +44 20 4587 0498
UAE: +971 800 0357 04553
UK: +44 20 4587 0498 / Toll free: +44 800 358 1035
United States: +1 646 787 9445 / Toll Free: +1 855 979 6654
Passcode: 512501
Participants may also join via the webcast. Please pre-register and join here.
About Fertiglobe:
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in
sustainable ammonia. Fertiglobe’s production capacity comprises of 6.6 million tons of urea and merchant
ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of
nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports
and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi
and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees and
was formed as a strategic partnership between OCI Global (“OCI”) and the Abu Dhabi National Oil Company
(“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and
ISIN “AEF000901015. To find out more, visit:www.fertiglobe.com.
For additional information, contact:
Fertiglobe Investor Relations: For additional information on Fertiglobe:
Rita Guindy www.fertiglobe.com
Director
Email: rita.guindy@fertiglobe.com
investor.relations@fertiglobe.com
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Sentiment: positive