OCI Global Reports H2 2024 Results

AMSTERDAM, March 14, 2025 /PRNewswire/ -- Hassan Badrawi, CEO of OCI Global commented:

"2024 has been a year of pivotal transformation for OCI Global. We have successfully executed a series of strategic transactions, significantly strengthened our balance sheet, and delivered exceptional returns to our shareholders. These milestones reflect our agility in navigating evolving market conditions while reinforcing our deep value creation ethos.

Specifically, in the second half of 2024, we announced the divestment of OCI Methanol to Methanex and completed the divestments of our entire Fertiglobe equity stake to ADNOC, Iowa Fertilizer Company to Koch Industries, and OCI Clean Ammonia^[1] to Woodside Energy. These transactions will collectively amount to over $11.6 billion in gross proceeds, which has allowed us to repay approximately $1.8 billion in debt and return $3.3 billion in cash distributions to shareholders in Q4 2024. An additional cash distribution of up to $1 billion ($4.75 per share) is further planned for Q2 2025, subject to the necessary approvals. This would take OCI's cash returns to shareholders to $6.4 billion over the course of a four-year period and bring total returns to shareholders via buybacks, share and cash distributions to more than $21 billion since our original listing in 1999.

Looking ahead to 2025, our priority remains executing key outstanding deliverables including finalizing the OCI Methanol transaction, achieving Project Completion for OCI Clean Ammonia, and leveraging the operational excellence and strategic value of our European Nitrogen assets against a supportive European market backdrop. Latterly, our nitrogen production facility in Geleen, independent ammonia import terminal in Rotterdam and leading pan-European distribution platform are positioned favorably with respect to recent rationalization in the industry and increasing ammonia throughput into Europe; OCI is set to benefit further in the medium- to longer-term based on growing regulatory support and our expectation of normalized gas pricing.

Beyond this, with a leaner, more agile and streamlined organization, OCI Global is well placed to navigate its future supported by financial strength and strategic optionality." 

Financial Highlights

FY 2024 Key Highlights

H2 2024 Key Highlights

Free Cash Flow and Net Debt Highlights

Key Strategic and Business Highlights

2024 has been a defining year for OCI, as the company executed several transformative strategic initiatives to unlock shareholder value and position itself for the future. Notable milestones in H2 included:

The expected cumulative crystallization of approximately $11.6 billion of gross proceeds from these four transactions has afforded OCI significant flexibility to deliver on its capital allocation priorities, including deleveraging at a gross level, as well as returning a meaningful quantum of capital to shareholders.

All OCI NV bank debt has now been repaid, including the revolving credit facility and bridge facility utilized during the transition period. The $698 million 2025 Senior Secured Notes were redeemed at par on 15 October 2024. Total debt repayment in H2 2024 amounted to $1,817 million. Remaining cash proceeds have been invested whilst OCI currently retains principal gross debt of $685 million, $600 million of which is in the form of its 2033 bonds. OCI's capital structure will be reviewed on the closing of the OCI Methanol transaction.

Total, Continuing and Discontinued Operations Operational Highlights

Further to the announcement of the expected divestiture of OCI's equity holdings in OCI Methanol, this segment is now classified as Discontinued Operations. Discontinued Operations for the second half of 2024 also includes results for IFCo, Fertiglobe and OCI Clean Ammonia for the period preceding the closing of the respective transactions. The sale of IFCo to KAES completed on 29 August 2024, the sale of Fertiglobe to ADNOC completed on 15 October 2024 and the sale of OCI Clean Ammonia to Woodside completed on 30 September 2024^[4].

Expenditures for OCI Clean Ammonia following its close date are recorded as payments against a liability. Prior to the close date, spend on OCI Clean Ammonia was categorized either as growth capital expenditure in Discontinued Operations or as pre-operating costs within the EBITDA of Discontinued Operations.

Continuing Operations as presented in this report reflects costs associated with the Corporate Entities and the operational performance of the European Nitrogen segment.

Total Operations (Continuing and Discontinued)

Continuing Operations (European Nitrogen and Corporate Entities)

Discontinued Operations (OCI Methanol)

Market Outlook

Nitrogen

The outlook for OCI's European Nitrogen business is positive driven by healthy supply and demand dynamics, an expectation of normalizing gas markets, and supported by evolving regulatory measures including the introduction of the EU Carbon Border Adjustment Mechanism (CBAM) in 2026 and the proposed implementation of progressive tariffs on Russian and Belarusian nitrogen imports from 1 July 2025.

Ammonia

Nitrates and other Premium Products

Methanol

Total Financial Results at a Glance (Continuing and Discontinued)

Table 1 - https://mma.prnasia.com/media2/2641431/Table_1___Financial_Highlights.jpg?p=medium600

Table 2 and 3 - https://mma.prnasia.com/media2/2641432/Table_2_and_3___BS_Highlights_and_Benchmark_Prices.jpg?p=medium600

Table 3 - https://mma.prnasia.com/media2/2641433/Table_3___Product_Sales_Volumes.jpg?p=medium600

Table 4 - https://mma.prnasia.com/media2/2641434/Table_4___Segment_Overview_HY.jpg?p=medium600

Table 5 - https://mma.prnasia.com/media2/2641458/Table_5___Segment_Overview_FY.jpg?p=medium600

Reconciliation to Alternative Performance Measures

Adjusted EBITDA

Adjusted EBITDA is an Alternative Performance Measure (APM) that intends to give a clear reflection of the underlying performance of OCI's operations. The main APM adjustments in the second half of 2024 and 2023 relate to:

Table 6 - https://mma.prnasia.com/media2/2641436/Table_6___APM_EBITDA.jpg?p=medium600

Table 7 - https://mma.prnasia.com/media2/2641437/Table_7___APM_Net_Income.jpg?p=medium600

Table 8 - https://mma.prnasia.com/media2/2641430/Table_8___FCF.jpg?p=medium600

Notes

This report contains unaudited second half financial highlights of OCI Global ('OCI,' 'the Group' or 'the Company'), a public limited liability company incorporated under Dutch law, with its head office located at Honthorststraat 19, 1071 DC Amsterdam, the Netherlands.

OCI Global is registered in the Dutch commercial register under No. 56821166 dated 2 January 2013. The Group is primarily involved in the production of nitrogen-based fertilizers and industrial chemicals.

Auditor

The financial highlights and the reported data in this report have not been audited by an external auditor.

Investor and Analyst Conference Call

On 14 March 2025 at 15:00 CET, OCI will host a conference call for investors and analysts. Investors can find the details of the call on the Company's website at www.oci-global.com.

Market Abuse Regulation

This press release contains inside information as meant in clause 7(1) of the Market Abuse Regulation.

About OCI Global

Learn more about OCI at www.oci-global.com. You can also follow OCI on Twitter and LinkedIn.

Contact

OCI Global Investor Relations

Sarah Rajani, CFA
Email: sarah.rajani@oci-global.com

www.oci-global.com

OCI stock symbols: OCI / OCI.NA / OCI.AS

[1] The OCI Clean Ammonia project has been renamed to Beaumont New Ammonia by Woodside to reflect change of ownership.
[2] Production of lower carbon ammonia is conditional on supply of carbon abated hydrogen and ExxonMobil's CCS facility becoming operational.
[3] The contingent consideration and the indemnifications are offset in the financial statements pursuant to IAS 32.
[4] OCI continues to be involved with the construction, commissioning, and start-up of the facility through Project Completion with a financial obligation to pay for the remaining capital expenditure and costs to Project Completion. Following the transaction completion on 30 September 2024, costs related to OCI Clean Ammonia form part of Continuing Operations.
[5] TRIR includes OCI Clean Ammonia, while it excludes IFCo operations from September 2024 and Fertiglobe operations from October 2024.

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

OCI Global Reports H2 2024 Results

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** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

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