Fertiglobe Sees Profit Surge Driven by Urea Price Increases
Fertiglobe, a leading global exporter of urea and ammonia, has reported impressive financial results for the third quarter of 2025. The company’s revenue and earnings have surged, driven by increased urea prices and operational enhancements. This growth positions Fertiglobe favorably for continued success in the coming quarters.
Financial Performance Overview
In the third quarter of 2025, Fertiglobe’s revenue reached $758 million, marking a 53% increase compared to the same period last year. The adjusted EBITDA rose significantly by 69%, totaling $286 million. These gains were attributed to improved operational efficiency and higher average realized prices for their products.
The adjusted net profit attributable to shareholders soared to $134 million, a substantial rise from $28 million in Q3 2024. Reported net profit, which includes one-off gains from a tax settlement in Egypt, stood at $235 million. This settlement involved the recognition of $720 million in goodwill for tax purposes, contributing positively to the company’s financial results.
For the first nine months of 2025, Fertiglobe reported a 31% increase in revenues, reaching $2 billion. Adjusted EBITDA for this period climbed 48% to $723 million, while adjusted net profit grew by 66% to $218 million. The reported net profit for the same period was $328 million.
Strategic Initiatives and Future Outlook
Fertiglobe has made significant strides in implementing initiatives aimed at achieving its 2030 EBITDA growth target. Approximately 38% of these initiatives have already been executed, focusing on operational improvements, cost reductions, and exploring new market segments.
Key Initiatives:
– **Manufacturing Improvement Program (MIP)**: Fertiglobe has completed 43% of its targeted initiatives, which are expected to generate an additional $110–120 million in EBITDA by 2028. The integration of artificial intelligence could contribute an extra $20 million.
– **Cost Reduction Plan**: The company has achieved 84% of its $55 million savings target, including $19 million in fixed cost reductions, aided by ADNOC’s support.
– **Wengfu Australia Acquisition**: Completed in October 2025, this acquisition is self-financed and is projected to add $23 million in annual EBITDA by 2030.
– **DEF and AGU Expansion**: Investments in Diesel Exhaust Fluid and Automotive Grade Urea capacity have been completed, with expectations of generating an additional $22 million in annual EBITDA by 2030.
Fertiglobe has also announced a dividend of at least $100 million for the second half of 2025, on top of the $125 million already distributed for the first half. This indicates total shareholder returns of at least $287 million for the year, translating to a yield of approximately 5%.
Tax Settlement Impact
In August 2025, Fertiglobe reached a significant agreement with Egyptian tax authorities, allowing for the deductibility of $720 million in goodwill associated with the Egyptian Fertilizer Company. This settlement resulted in a $111 million gain from reversing prior tax provisions and recognizing a $31 million deferred tax asset, collectively impacting reported earnings by $142 million.
Market Outlook
Looking ahead, Fertiglobe anticipates continued strong performance into the fourth quarter of 2025. The company cites tight ammonia markets and high seasonal demand for urea as key factors driving growth, particularly in anticipation of spring planting. Fertiglobe’s long-term growth strategy is supported by expanding applications for ammonia in industrial and agricultural sectors, alongside limited new global urea capacity.
CEO Ahmed El-Hoshy emphasized the company’s achievements despite challenges, stating, “Despite gas supply constraints in Egypt, we achieved record urea production and optimized margins. With nearly 40% of our 2030 growth plan already actioned, we are on track to deliver sustainable value for our shareholders.”
FAQs
What drove Fertiglobe’s profit growth in Q3 2025?
Fertiglobe’s profit growth was primarily driven by higher urea prices and operational improvements, resulting in significant increases in revenue and adjusted EBITDA.
How much in dividends is Fertiglobe planning to distribute for 2025?
Fertiglobe plans to distribute at least $100 million in dividends for the second half of 2025, in addition to the $125 million already paid for the first half, totaling at least $287 million for the year.
What are Fertiglobe’s future growth strategies?
Fertiglobe’s future growth strategies include implementing operational improvements, cost reduction initiatives, and expanding into new market segments, with a focus on achieving its 2030 EBITDA growth target.
Conclusion
Fertiglobe’s strong financial performance in Q3 2025 reflects its effective operational strategies and favorable market conditions. With ongoing initiatives and a positive outlook for the fourth quarter, the company is well-positioned to continue delivering value to its shareholders. As it progresses towards its 2030 growth targets, Fertiglobe remains committed to enhancing its market position and operational efficiency.
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