#USA #Amsterdam #Methanex Corporation #OCI Global #Hassan Badrawi

OCI Global's Q1 2026 Trading Update: Key Developments

OCI Global, under the leadership of CEO Hassan Badrawi, has reported progress during the first quarter of 2026, showcasing notable achievements in executing its strategic initiatives. This update covers the company's key operational highlights, financial performance, and outlook moving forward.

Strategic Transactions

In Q1 2026, OCI Global successfully completed significant transactions that reflect its commitment to executing strategic priorities. One of the most impactful transactions was the sale of OCI Ammonia Holding to AGROFERT, a major player in the European nitrogen products industry. This sale, valued at EUR 290 million, marks a crucial step in refining OCI's business focus and enhancing operational efficiency. The net proceeds from this transaction are estimated to be approximately USD 319 million after adjustments. Additionally, OCI finalized the handover of Beaumont New Ammonia to Woodside, receiving a deferred payment of USD 470 million, which constitutes 20% of the total sale proceeds.

Furthermore, OCI has completely liquidated its equity stake in Methanex Corporation, obtaining a net weighted average price of USD 54.56 per share—21% above its initial entry price. This series of trades generated approximately USD 543 million, further solidifying OCI's cash position, which stood at around USD 1.08 billion by the end of the quarter.

Financial Highlights

In terms of financial performance, OCI's adjusted EBITDA for the remaining operating entity, OCI Nitrogen, reached USD 52 million. However, the company's operating free cash flow was registered at negative USD 33 million, primarily due to a significant working capital outflow of USD 76 million. This outflow stems from reversing late 2025 payables and optimizing receivables.

Corporate costs for Q1 2026 were reported at USD 18.5 million, reflecting ongoing strategic processes that include the Enterprise Chamber proceedings and continued assessment of OCI Nitrogen's potential sale, among other strategic reviews. The cost structure remains above the previously forecasted run-rate due to non-recurring items and strategic decision-making activities.

The company's positive net cash position, reported at USD 695 million as of March 31, 2026, illustrates effective cash management, especially following the completion of key asset disposals.

Operational Insights

OCI Nitrogen's operational landscape faced challenges, including heightened gas input costs that constrained profit margins despite favorable nitrogen prices. This environment necessitated imports to compensate for a temporary operational disruption affecting one of its ammonia lines. However, the line has since been restarted, and operational consistency has resumed. The management anticipates continued fluctuations influenced by external factors, including geopolitical conditions and energy market volatility.

Product sales for Q1 2026 showed a modest increase of 11%, achieving a total of 539,400 metric tonnes sold compared to 484,400 metric tonnes in the same period of the previous year. While some product lines showed decreased sales volumes, others, including UAN and DEF/AdBlue, noted improvements in performance. The nitrogen pricing environment remains dynamic, reflecting both market demand and geopolitical impacts.

Looking Ahead

As OCI continues to progress with its strategic initiatives, its focus remains on disciplined cost management and enhancing its current priorities, particularly advancing potential transactions related to OCI Nitrogen. The Company is committed to providing further updates in accordance with disclosure obligations, aiming to maintain transparency with stakeholders as it navigates the evolving market landscape.

OCI Global's proactive approach and strategic asset management position it well to adapt to challenges while capitalizing on opportunities within the nitrogen-based fertilizers and industrial chemicals market. As the Company advances its business objectives, it acknowledges the importance of external dynamics in shaping financial outcomes and operational strategies for the future.