Fertiglobe Charts Strong Growth as Operational Gains Drive Nine-Month Results

The fertiliser producer's revenues surged 44 per cent to AED10.7 billion in the first nine months of 2026, buoyed by higher ammonia prices and restored export momentum, even as margin pressures mounted.

Fertiglobe has reported substantial progress across its nine-month results for 2026, with revenues climbing to AED10.7 billion, a gain of 44 per cent year-on-year. The expansion reflects the strength of ammonia markets and improved sales volumes, though these benefits were tempered by softer urea pricing and the planned maintenance programme at its Egyptian facilities.

Adjusted earnings before interest, taxes, depreciation and amortisation reached AED3.5 billion, up 31 per cent from the prior year, whilst adjusted net profit attributable to shareholders grew 56 per cent to AED1.3 billion. The underlying improvement in profitability underscores the company’s ability to capture value from its portfolio of production assets across the UAE, Egypt and Algeria.

The third quarter presented a more nuanced picture. Revenues in the period totalled AED3.3 billion, marking a 19 per cent increase year-on-year, yet adjusted EBITDA declined 19 per cent whilst adjusted net profit fell 62 per cent. These headwinds stemmed from elevated logistics and operating costs that weighed on margins, alongside the final phases of the turnaround at EBIC in Egypt.

Ahmed El-Hoshy, Chief Executive of Fertiglobe, emphasised the operational achievements that defined the quarter. The company’s commercial and logistics teams restored UAE exports to 95 per cent of production capacity, a remarkable recovery from 56 per cent in the second quarter. This recovery demonstrates both the sophistication of Fertiglobe’s supply chain management and the importance of the UAE as a strategic production hub. The completion of the major turnaround at EBIC is expected to boost the plant’s ammonia output by approximately 20 per cent and will add AED99 million of annual EBITDA compared to 2024 levels.

The company has now set its sights on a new cost optimisation initiative. Having completed an initial AED202 million savings programme, Fertiglobe has launched FIT3, which targets a further AED110 million in annual non-gas cost reductions by the end of 2028. Combined with the normalisation of maintenance capital expenditure from 2027, this disciplined approach to efficiency will enhance competitiveness and cash generation as market cycles evolve.

The Egyptian Fertilizer Company and Sorfert in Algeria have demonstrated exceptional performance, with urea utilisation rates averaging 99 per cent across both operations during the nine-month period. This excellence reflects the progress achieved through Fertiglobe’s Manufacturing Improvement Plan, a comprehensive initiative designed to extract value from each facility. As we reported in IHC’s recent milestone, such operational rigour and capital discipline characterise Abu Dhabi’s most successful enterprises.

Since its public listing in October 2021, Fertiglobe has returned over AED11 billion to shareholders through dividends and share buyback programmes, a testament to both the strength of its underlying assets and its commitment to long-term value creation. The most recent distribution, an AED551 million dividend in October 2026, reflects this dedication.

What it means for Abu Dhabi

Fertiglobe’s performance reinforces Abu Dhabi’s position as a global fertiliser powerhouse. The company’s ability to navigate complex market conditions, optimise production across multiple geographies, and maintain strong capital discipline exemplifies the calibre of enterprises that drive the emirate’s economic growth and export competitiveness on the world stage.

The company’s continued investment in operational excellence and its strategic focus on unlocking value from existing assets align with the broader ambitions of Abu Dhabi’s industrial sector. As Fertiglobe pursues its Grow 2030 opportunities, it contributes to the emirate’s diversified economic foundation and reinforces its reputation as a centre of manufacturing and commercial excellence.

Source: WAM