Fertiglobe (FERTIGLB) Q4 2024 earnings summary

Executive summary

• Adjusted EBITDA for 2024 was $648 million and $158 million for Q4 2024; adjusted net profit was $174 million for 2024 and $42 million for Q4 2024.

• Q4 2024 results were impacted by planned turnarounds, power and gas shortages in Algeria and Egypt, and the strategic deferral of nearly 240,000 tons of shipments to Q1 2025, shifting $59 million EBITDA and $29 million net profit to the next quarter.

• 2024 revenue was $2,009 million, down 17% year-over-year; adjusted EBITDA down 35%; adjusted net profit down 52%.

• Board recommended H2 2024 dividend of $125 million, bringing total 2024 dividends to $275 million, among the highest yields in the industry.

• Strategic focus on cost optimization, manufacturing improvement, and expansion in low-carbon ammonia projects, with ADNOC acquiring a majority stake and major project launches in the UAE.

Financial highlights

• Q4 2024 revenue was $466 million, down 28% year-over-year; adjusted EBITDA margin was 33.9%.

• Free cash flow before growth CapEx was $84 million in Q4 2024 and $249 million for the full year.

• Net debt at year-end was $1,048 million, with net debt/LTM adjusted EBITDA at 1.6x.

• Total cash CapEx including growth was $168 million in 2024, with $137 million for maintenance.

• Adjusted EBITDA margin for 2024 was 32.2%; gross profit margin was 24.7%.

Outlook and guidance

• Urea and ammonia markets expected to remain tight in the short term due to limited Chinese exports, strong demand, and production issues in Iran.

• 2025 maintenance CapEx guidance is $120–$140 million, with an additional $50 million for one-off projects and efficiency initiatives.

• Deferred shipments are expected to benefit Q1 2025 results, leveraging tight markets and high crop/gas prices.

• Long-term demand growth anticipated for low-carbon ammonia in power generation, maritime fuels, and hydrogen applications.

• Full strategy update to be provided at Capital Markets Day with Q1 2025 results.