Fertiglobe announced on Thursday H1 2024 revenues totaling $1.048 billion, with adjusted EBITDA of $378 million, an adjusted net profit of $134 million, and free cash flows amounting to $225 million. The company also reported Q2 2024 revenues of $496 million, adjusted EBITDA of $156 million, and an adjusted net profit attributable to shareholders of $15 million. Despite rising natural gas costs and stable grain prices in Q2 2024 compared to Q1 2024, nitrogen prices were affected by delayed demand, cautious purchasing, and reduced urea imports from India, partially offset by supply disruptions towards the end of the quarter.
Fertiglobe's robust financial position and effective cash management continue to support growth initiatives while maintaining shareholder returns. Consequently, a proposal for H1 2024 dividends will be submitted to the Board for approval in September 2024, with payments planned for October 2024. Ahmed El-Hoshy, CEO of Fertiglobe, highlighted significant progress in strategic business objectives, including the Final Investment Decision (FID) on the TA'ZIZ 1 mtpa low carbon ammonia project in partnership with TA'ZIZ, GS Energy Corporation, and Mitsui & Co., Ltd., with Tecnimont S.p.A. awarded the construction contract, slated for production start in 2027.
Fertiglobe was also selected as the winning bidder in the H2Global auction, securing a contract to supply renewable ammonia from Egypt to Europe, valued up to €397 million at a delivered price of €1,000 per ton until 2033. This agreement supports demand and pricing, aiding in the FID for the first integrated green hydrogen plant in Africa by H1 2025. Additionally, Fertiglobe, supported by Adnoc, facilitated the world's first certified bulk commercial shipment of low-carbon ammonia using carbon capture and storage to Mitsui & Co. Ltd for clean power generation in Japan.
The company has made significant strides in its cost optimization program, achieving 84% of the $50 million run rate target by June 2024, resulting in $42 million in cost savings. Fertiglobe also focuses on its Manufacturing Improvement Plan (MIP), targeting at least $100 million in incremental annual EBITDA by the end of 2025 through enhanced energy efficiency and production. The commitment to integrating AI across production platforms further underscores Fertiglobe's dedication to unlocking additional value.
As of June 30, 2024, Fertiglobe's net debt stood at $880.6 million, reflecting a net debt / LTM adjusted EBITDA ratio of 1.0x, enabling a balance between future growth and dividend payouts, supported by strong free cash generation and a healthy balance sheet. Fertiglobe remains dedicated to enhancing shareholder value through active cost optimization and manufacturing improvement initiatives, strengthening cash flow and maintaining a robust financial structure.
