Fertiglobe, the world's largest seaborne exporter of urea and net ammonia combined and nitrogen fertiliser giant, on Monday reported a robust set of financial results for the third quarter of 2025, buoyed by higher urea prices, operational efficiencies, and strategic initiatives under its Grow 2030 plan.

Revenues for the quarter surged to $758 million (Dh2.78 billion), marking a 53 per cent increase compared to the same period last year. Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) rose even more sharply, climbing 69 per cent year-on-year to $286 million (Dh1.05 billion), driven by improved price capture across its sales portfolio and record production volumes in Egypt.

The company's adjusted net profit attributable to shareholders reached $134 million (Dh491 million), a significant jump from $28 million (Dh103 million) in Q3 2024. On a reported basis, net profit stood at $235 million (Dh861 million), boosted by a one-off gain related to the recognition of tax-deductible goodwill in Egypt.

In August, Fertiglobe reached a settlement with Egyptian tax authorities allowing the deductibility of $720 million (Dh2.64 billion) in goodwill for the Egyptian Fertilizer Company. This led to a reversal of $111 million (Dh406 million) in previously uncertain tax provisions and the recognition of a $31 million (Dh113 million) deferred tax asset, resulting in a total positive impact of $142 million (Dh520 million), of which $35 million (Dh128 million) was included in adjusted net profit.

For the nine-month period ending September 30, Fertiglobe reported revenues of $2 billion (Dh7.34 billion), up 31 per cent year-on-year, and adjusted Ebitda of $723 million (Dh2.65 billion), a 48 per cent increase. Adjusted net profit for the period rose 66 per cent to $218 million (Dh800 million), while reported net profit reached $328 million (Dh1.2 billion).

CEO Ahmed El-Hoshy said the results reflect Fertiglobe's resilience and agility in a dynamic market.“Despite gas supply curtailments in Egypt, we capitalised on tight global urea markets, with prices rising 33 per cent year-on-year to $474 per tonne (Dh1,740) FOB Egypt,” he said.“We achieved record urea production volumes in Egypt, optimising margins and delivering strong results.”

He also highlighted progress on the company's Grow 2030 strategy, with about 38 per cent of its targeted Ebitda growth initiatives already actioned. Fertiglobe's Manufacturing Improvement Plan is 43 per cent complete and expected to deliver $110–120 million (Dh404–441 million) in incremental Ebitda by 2028, with further upside from AI integration.

Cost-cutting efforts are also well underway, with 84 per cent of the $55 million (Dh202 million) target achieved. This includes a $19 million (Dh70 million) annual fixed cost reduction supported by Adnoc, Fertiglobe's strategic partner.

The company completed its acquisition of Wengfu Australia's distribution assets in October, with the entity now self-financed and expected to contribute $23 million (Dh85 million) in annual Ebitda by 2030. Investments in Diesel Exhaust Fluid and Automotive Grade Urea production capacity are also expected to generate $22 million (Dh81 million) in incremental Ebitda annually.

Fertiglobe has guided for second-half dividends of at least $100 million (Dh367 million), bringing total capital returns for 2025 to a minimum of $287 million (Dh1.05 billion), including $62 million (Dh228 million) in share buybacks. Since its IPO, the company has returned $2.8 billion (Dh10.3 billion) to shareholders, equivalent to around 50 per cent of its market value at listing.

As of September 30, Fertiglobe's net debt stood at $984 million (Dh3.61 billion), down from $1.05 billion (Dh3.85 billion) at the end of 2024, with a net debt-to-Ebitda ratio of 1.1x.

Looking ahead, Fertiglobe expects continued strength in ammonia and urea markets, supported by tight supply and rising demand. The company remains focused on executing its long-term growth strategy and delivering value to shareholders.

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