#Netherlands #Amsterdam #OCI Global #Hassan Badrawi #Beaumont New Ammonia

OCI Global Q1 2025 Trading Update

Hassan Badrawi, the CEO of OCI Global, has expressed optimism as the company enters 2025, highlighting a promising start after a year filled with crucial portfolio changes. The first quarter has been marked by significant milestones, including the resolution of a dispute concerning the sale of OCI Methanol to Methanex and substantial advancements in the Beaumont New Ammonia plant's construction, which is projected to be completed later this year.

Financial Performance Highlights

OCI Global has maintained its commitment to disciplined financial management. In May, the company distributed $1 billion to shareholders, increasing cumulative distributions to $6.4 billion over the past four years. Despite challenges, the European nitrogen segment remains profitable, although it faced increased gas prices and a planned turnaround affecting the EBITDA margin. However, the team is optimistic about the projected decrease in European gas prices, which should help improve profitability moving forward.

The adjusted EBITDA for continuing operations showed a loss, although it improved from the previous quarter due to corporate cost-saving measures gaining traction. OCI is on track to meet or even exceed its corporate cost target of $30-40 million by the end of 2025.

For the discontinued operation involving OCI Methanol, sales performance was significantly affected by a planned turnaround at the OCI Beaumont plant. Nevertheless, elevated methanol prices and the successful restart of Natgasoline operations contributed positively to the results.

Strategic Developments

A major focal point for OCI is the anticipated finalization of the sale of OCI Methanol to Methanex. This transaction, announced on September 8, 2024, is expected to close in Q2 2025, pending necessary regulatory approvals. The transaction has already been cleared by the European Commission, indicating no competition concerns. Additionally, OCI successfully resolved a prior dispute with Proman concerning shareholder rights in the Natgasoline joint venture, ensuring a smooth process for divesting the methanol business.

Construction of the Beaumont New Ammonia site continues to progress. As of March 31, 2025, the project cash spend has reached $1,167 million, with engineering and procurement nearing completion and commissioning activities set to commence later this year.

Continuous Innovation and Partnerships

OCI's innovation extends beyond financial maneuvers. In February, a collaboration was launched with Dossche Mills and AGRAVIS to enhance sustainable wheat production in Europe by utilizing low-carbon fertilizers, resulting in a tenfold increase in sustainable wheat harvested in 2024. OCI's nitrogen solutions play a pivotal role in supporting climate-smart farming practices.

The company is also taking a lead in clean ammonia usage in shipping. Notably, OCI successfully executed the Port of Rotterdam's first ammonia ship-to-ship bunkering pilot, highlighting its strategic position in promoting ammonia as a cleaner fuel alternative.

Overall, OCI Global's Q1 2025 results reflect its ability to navigate a complex market environment while continuing to prioritize shareholder value. With a simplified corporate structure and a robust European nitrogen platform, the company is well-positioned for future growth and strategic execution. The ongoing evaluation of strategic alternatives reflects OCI's commitment to making decisions in the best interest of all shareholders, ensuring long-term sustainability and value creation.

OCI Global is a public limited liability company headquartered in Amsterdam, primarily focused on the production of nitrogen-based fertilizers and industrial chemicals. For more information about OCI and its developments, visit OCI Global.