Fertiglobe's net profit declined by 59.6% in the first quarter of this year to reach $188.8 million, affected by the decline in the selling prices of fertilizer products in light of the drop in gas prices in Europe.
The company, listed on the Abu Dhabi Stock Exchange, indicated in a statement today, Tuesday, that its revenues during the period amounted to $694 million, while its adjusted earnings before interest, taxes, depreciation and amortization amounted to $297 million.
Ahmed Al-Hoshi, CEO of Fertiglobe, said that natural gas prices witnessed a significant decline in the first quarter of 2023 due to the mild weather conditions last winter, which led to lower marginal production costs in Europe and the postponement of purchases in many key regions, in addition to the decline in industrial demand. relatively.
Al-Hoshi added in the statement of business results that despite the decline in prices during the first quarter and the postponement of two shipments, each consisting of 50 thousand tons of urea for sale in Ethiopia, at an average price of $ 700 per ton, the company was able to increase sales volume by 9%.
Green ammonia production begins
Al-Hoshi said that the company started in the first quarter of this year to produce green ammonia from its green hydrogen plant in Egypt, in the Ain Sokhna region, of which the first phase was put into operation last November. Electrolysis with a capacity of 100 megawatts. The project, when all its phases are completed, will produce up to 10,000 tons of hydrogen.
It is noteworthy that the company plans to distribute cash dividends of no less than $250 million for the first half of 2023, payable next October, provided that the final amount of the dividends will be announced with the results of the second quarter in August.
