Tuesday, 02 January 2024 12:17 GMT

Fertiglobe To Return Minimum $277 Million To Shareholders In 2025 Amid Strong Strategic Progress


(MENAFN- Khaleej Times)

Fertiglobe, the largest seaborne exporter of urea and ammonia globally and a key nitrogen fertiliser producer in the MENA region, has announced a minimum capital return of $277 million to shareholders for 2025, underscoring its commitment to value creation and strategic growth.

The company's board of directors approved $125 million in interim dividends for H1 2025, equivalent to 5.58 fils per share, exceeding earlier guidance of $100 million. Including $31 million in share buybacks, the total H1 return to shareholders stands at $156 million. Fertiglobe has also guided for at least $100 million in H2 dividends, with $52 million in buybacks already completed by September 30, bringing the full-year shareholder return to $277 million, representing a minimum yield of 5 per cent.

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CEO Ahmed El-Hoshy highlighted the company's rapid execution of its“Grow 2030 Strategy,” which includes cost savings, AI integration, and expansion into new product lines and markets.“We are proud of the swift progress we've made, including the acquisition of Wengfu Australia's distribution assets, which are expected to pay back in under four months,” El-Hoshy said.

Q3 2025 adjusted Ebitda is projected to reach at least $250 million, up from $176 million in Q2, driven by tight market conditions and strategic execution. Fertiglobe has achieved $46 million in cost savings, or 84 per cent of its announced target, including $19 million in fixed cost reductions implemented ahead of schedule with ADNOC's support. The integration of Artificial Intelligence is expected to unlock $25 million in annual Ebitda by 2030, a $20 million increase over previous estimates. Expansion of Diesel Exhaust Fuel (DEF) production in the UAE and Automotive Grade Urea (AGU) capacity in Egypt for European markets is projected to add $22 million in annual Ebitda by 2030.

As part of its Manufacturing Improvement Plan (MIP), Fertiglobe commissioned a Hydrogen Recovery Unit (HRU) in the UAE, boosting ammonia output by up to 6 per cent and reducing CO2 emissions. The project delivers an annual IRR of over 25 per cent and aligns with the company's sustainability goals.

The MIP also emphasises AI-driven asset optimisation and predictive maintenance, contributing to the company's long-term Ebitda growth target of $110–120 million by 2028.

H1 2025 dividends will be paid at the end of October to shareholders on record as of October 17, 2025. Fertiglobe has repurchased 78.8 million shares, representing 0.95 per cent of total outstanding shares, as part of its ongoing 2.5 per cent share buyback programme.

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