OCI Global's Strategic Transformations and Financial Performance for H2 2024

OCI Global, led by CEO Hassan Badrawi, has undergone significant transformation in 2024, with the completion of several strategic transactions that have strengthened its market position and enhanced shareholder value. The company reported notable achievements in its financial activities throughout the second half of the year, leading to an impactful evaluation of its performance.

Financial Highlights of H2 2024

In the second half of 2024, OCI Global's reported revenue from total operations reached $1,648 million, a decline of 28% compared to the same period in the previous year. This decline reflects the divestment of key assets during the reporting period, affecting overall revenue generation. The adjusted EBITDA for total operations was $234 million, significantly down from $552 million in H2 2023, showing the impact of these divestments as well.

In contrast, OCI’s revenue from continuing operations saw a 13% increase, amounting to $466 million. The adjusted EBITDA loss in continuing operations was $39 million, an increase in loss compared to the previous year's $14 million. These figures highlight both the challenges faced by the company and also the resilience shown in some operational areas.

Significant Divestitures and Returns to Shareholders

2024 was characterized by several strategic divestitures that allowed OCI Global to return significant cash to shareholders. The divestment of OCI Methanol to Methanex, alongside the full divestiture of its stake in Fertiglobe to ADNOC, as well as selling the Iowa Fertilizer Company to Koch Industries, collectively brought in over $11.6 billion gross proceeds. This influx of capital enabled the company to repay sizeable debts amounting to approximately $1.8 billion and return $3.3 billion in cash distributions to its shareholders in Q4 of 2024.

Further, the company has planned an additional cash distribution of up to $1 billion, subject to necessary approvals, which would contribute to increasing total returns to shareholders to over $6.4 billion over a four-year span. These distributions highlight OCI’s commitment to enhancing shareholder value, particularly following the substantial financial returns since its listing in 1999.

Looking Ahead: 2025 Strategic Priorities

As OCI positions itself for a productive 2025, the focus remains on completing outstanding transactions and enhancing operational excellence. Finalizing the OCI Methanol transaction and achieving project completion on OCI Clean Ammonia are among the top priorities. The strategic value of OCI’s European nitrogen assets is expected to play a significant role in leveraging against favorable market conditions.

The company’s nitrogen production facility in Geleen, along with an independent ammonia import terminal in Rotterdam, are situated favorably amidst recent market rationalizations and increasing ammonia throughput into Europe. Management anticipates OCI to capitalize on favorable gas pricing and growing regulatory supports in the medium to long term.

Conclusion

OCI Global's trajectory in 2024 has been marked by transformative changes through strategic asset divestitures and a steadfast commitment to financial responsibility. The company is now better positioned to navigate future challenges while continuing to deliver shareholder returns. As OCI Global looks forward to 2025, it remains committed to leveraging its strengths, enhancing its operational capabilities, and ensuring a robust response to evolving market demands.