Abu Dhabi – Mubasher: The net profits of Fertiglobe hit $279.20 million during the first half (H1) of 2023, down year-on-year (YoY) from $1.09 billion.
The revenues plummeted to $1.24 billion during January-June 2023 from $2.65 billion in H1-22, according to the consolidated income statements.
Basic and diluted earnings per share (EPS) stood at $0.02 in H1-23, an annual drop from AED 0.09.
Financial Results for Q2-23
In the second quarter (Q2) of 2023, the ADX-listed firm posted $108.40 million in net profit, versus $623.10 million during the three-month period that ended on 30 June 2022.
Revenues shrank to $551.50 million in Q2-23 from $1.47 billion in Q2-22, while the basic and diluted EPS declined to $0.01 from $0.05.
Ahmed El Hoshy, CEO of Fertiglobe, commented: “We are pleased to see that nitrogen markets bottomed during Q2 and are tightening rapidly, with a strong price trajectory in recent weeks despite the traditional summer lull for fertilisers.”
“Looking ahead, we believe that limited incremental supply additions over the next several years, coupled with healthy farm economics, which incentivize nitrogen fertiliser application, and elevated marginal production costs in Europe continue to support a favorable nitrogen outlook in the medium to longer term.”
El Hoshy noted: “We expect more permanent closures of European marginal production if ammonia pricing continues to persist below marginal production costs.”
“Our overall sales volumes were lower compared to Q2-22, primarily due to a higher base effect given deferrals from Q1 to Q2 last year,” he mentioned.
The CEO indicated: “However, going into H2-23, we are well-positioned to service demand emerging from key regions, leveraging our centralized distribution capabilities and targeting demand centers that offer the highest netbacks, further supported by the reinstatement of urea and ammonia import duties into Europe.”
In January-March 2023, Fertiglobe recorded net profits valued at $188.80 billion, compared to $467.10 million during the same period a year earlier.
