Industry

Ahmed El-Hoshy, CEO of Fertiglobe. (Image source: Fertiglobe)

Fertiglobe, the seaborne exporter of urea and ammonia, and nitrogen fertiliser producer from the Middle East and North Africa region, reported Q1 2024 revenue of US$552mn, adjusted EBITDA of US$223mn, and adjusted net profit of US$119mn

In Q1 2024, ammonia prices retreated from their levels in Q4 2024 on easing supply disruptions and lower gas prices compared to the previous quarter, while urea prices were impacted by mixed trends due to favourable weather incentivising demand in North America coinciding with delayed planting in Europe, as well as lower-than-expected tender uptake in India, partially offset by healthy demand in other key regions including Brazil and Australia.

Ahmed El-Hoshy, CEO of Fertiglobe, commented, “We are pleased to report a strong quarter, marked by a 5% year-on-year increase in our own-produced sales volumes, driven by higher production and lower ending inventories, which led to a 22% and 1% increase in ammonia and urea own-produced sales volumes, respectively. This demonstrates continued efforts by our manufacturing and commercial teams to prioritise our key strategic objectives, paving the way for further operational milestones over the course of the year, by capitalising on our robust in-house capabilities and logistics footprint. It is worth noting that these results were delivered in an environment of market volatility and softer prices in Q1, on lower crop and energy prices as well as reduced imports from India and Europe, coupled with an improved supply situation with recent curtailments being reversed.

"Fertiglobe has continued to make good progress on its cost optimisation programme, having achieved 60% of its US$50mn run rate target implemented by the end of March 2024, and remains on track to realise the full target by the end of 2024. In addition, there is potential to generate at least US$100mn in incremental annual EBITDA by the end of 2025 compared to 2023, driven by improved production and energy efficiency within its ongoing manufacturing improvement plan (MIP). Together, these two initiatives have potential to generate US$150mn of incremental EBITDA by the end of 2025, representing an approximately 15% increase compared to 2023.

"These initiatives bolster Fertiglobe's cash flow generation across cycles, supporting the company’s already healthy free cash flow conversion and robust balance sheet, and enabling Fertiglobe to balance growth spending on value accretive projects and dividend payments.

"In addition, Fertiglobe remains firmly focused on technology, innovation and digitalisation, and is investing in the integration of Artificial Intelligence (AI) throughout its operations to unlock value, enhance efficiencies, and reduce emissions. The company is harnessing data integration and predictive analytics applications to support business objectives by improving the performance of equipment, processes, and facilities, while also implementing AI-powered analytics at its sites to enhance safety and reliability.

“I would like to extend my sincere appreciation to our exceptional team, whose dedication has been instrumental in our achievements. Their unwavering commitment to safety and excellence has been pivotal in our transformation into a leading global enterprise, which is about to embark on an exciting new chapter of growth and value creation following ADNOC’s acquisition of OCI's 50% equity stake, which will take ADNOC's ownership to a majority 86.2%. Together, we have immense confidence in Fertiglobe's ability to continue passing milestones and setting new standards for our industry.”

The Nigerian government is pushing policies to attract investment in the oil and gas sector. (Image source: Adobe Stock)

The President of Nigeria, Bola Ahmed Tinubu signed an Executive Order for US$10bn investments in oil and gas. 

Tinubu was speaking at the opening of a two-day retreat on economic transformation and development organised by the House of Representatives. 

Represented by his Chief of Staff, Femi Gbajabiamila, Tinubu also disclosed that the Federal Government signed the consolidated guidelines for implementing fiscal incentives for the oil and gas sector.

He said, “The Executive Order streamlines contracting processes, procedures, and timelines from 36 months to six months. The order also seeks to ensure that local content requirements are implemented without impeding investments or the cost competitiveness of oil and gas projects.

“All of these have the same objective – to reduce government interference with the commercial imperatives of businesses in the country so that businesses based here can be competitive and focus on their core objectives of economic growth through innovation and trade.

“We will need the support of the National Assembly to fully implement some of these reforms, as statutory changes will be required in some areas.
“I am confident that when the time comes, the governing partnership we have established between the Executive and the Legislature will ensure that these changes are effected swiftly to benefit our nation.

"Your actions have substantially fortified the legal framework of the Students Tertiary Education Loan Program, ensuring its efficient implementation. These achievements are a testament to the power of our partnership and the positive impact it can have on our nation.

“The legislature must have the capacity to monitor the executive, and the executive, in turn, should be willing to comply with the legislative enactments.

“It is not just a coincidence but a strategic advantage for our country that the governing relationship between the Executive and the Legislature perfectly reflects this ideal.

“As you know, my administration is implementing significant policy changes to reform how we govern and position our country for progress and shared prosperity for all citizens.”

Tinubu said, “These reforms, while necessary and, in some cases, long overdue, are not without their challenges. I am deeply grateful for your unwavering support and understanding during these times. Your understanding and support have been invaluable, and I am confident that with our continued collaboration, we can overcome any challenges that lie ahead.
“The oil and gas industry has long been the lifeblood of our national economy. My administration is working tirelessly to change this and diversify our economy from overreliance on the production of fossil fuels. However, we are also determined to maximise revenue potential from this critical industry.

“For this reason, we are pushing policies to attract investment in the oil and gas sector.”

He continued, “We can only justify our collective mandate and the trust our people repose in us through constructive collaboration between the National Assembly and the Executive. This joint effort is the minimum the people who voted for us expect from us.

“However, the very essence of checks and balances means there will be times when the executive and legislative prerogatives inevitably collide. Above all else, the national interest must guide our decisions in those moments. We share a common responsibility in shaping the future of our nation, and it is through our collaboration that we can effectively fulfil this duty."

With more than a decade of extensive experience in corporate communications, public relations, and stakeholder engagement, Otoa brings a wealth of expertise to UNOC. (Image source: UNOC)

The Uganda National Oil Company (UNOC) has announced the appointment of Tony Otoa as its new chief corporate affairs officer 

PAU believes that the development of sectoral linkages would not only allow maximisation of national content in the oil and gas sector, but also diversify the country's economy in a whole. (Image source: Petroleum Authority of Uganda)

The Economic and National Content Monitoring wing of the Petroleum Authority of Uganda (PAU) has organised a conference themed, 'Linkages: Leveraging Uganda’s Oil and Gas Sector with Other Sectors of the Economy to Enhance Broad-based Economic Growth and Development'