Abu Dhabi-based Fertiglobe, the largest nitrogen fertilizer producer in the Middle East and North Africa region and an early mover in sustainable ammonia, has approved a cash dividend of $200 million for H2 2023.
Announcing this at the company's Annual General Meeting today (April 30), Fertiglobe said its shareholders had given the go-ahead to audited accounts for 2023 and also the cash dividend (equivalent to 9 fils/share).
This brings the total dividends for the fiscal year 2023 to $475 million, representing one of the highest dividend yields in Fertiglobe’s industry and market with a total of $2,265 million returned to shareholders since the IPO.
Dr. Sultan Ahmed Al Jaber, Chairman of Fertiglobe, said the company's robust financial performance in 2023 underscored its resilience even as urea and ammonia prices returned to normal levels after peaking in 2022.
Fertiglobe continues to advance its low-carbon ammonia growth strategy, as demonstrated by milestones such as its inaugural shipment of internationally recognized renewable ammonia and the deployment of the world’s first cost-effective CycloneCC carbon capture unit in its UAE facilities, he stated.
Al Jaber pointed out that the fruitful partnership between Adnoc and OCI has made Fertiglobe the world’s largest seaborne exporter of ammonia and urea fertilizer.
Adnoc’s intention to increase its shareholding in Fertiglobe is a testament to the underlying quality of the business, its future growth strategy and ability to play a crucial role as a global growth platform for low-carbon and renewable ammonia, he added.
CEO Ahmed El Hoshy said Fertiglobe has achieved several significant operational, commercial and sustainability milestones in 2023, positioning the company for substantial growth in the years ahead.
"I am particularly pleased with our agility in responding to market dynamics and challenges, which enables us to maximize shareholder value while prioritizing sustainable growth and our ambitious decarbonization agenda," he noted.
Fertiglobe’s market resilience in 2023 was supported by our ongoing Manufacturing Improvement Plan (MIP), which is expected to deliver incremental annual ebitda growth by 2025.
"Additionally, our proactive cost optimization program has already achieved 51% of its $50 million run rate target within six months of its launch and will continue to play a pivotal role in enhancing free cash generation across market cycles," stated El Hoshy.
In 2023, Fertiglobe’s focus on operational excellence drove a 5% increase in own-produced sales volumes.
This, together with continued cost structure optimization, resulted in full-year revenue of $2,416 million and adjusted ebitda of $1,004 million, with adjusted net profit at $363 million and a healthy adjusted ebitda margin of 42%, he added.-TradeArabia News Service
