Energia
OCI Global Q3 2024 Trading Update
"During the course of the third quarter and the quarter to date, OCI has achieved significant milestones in its strategic transformation. We announced the sale of OCI Methanol to Methanex for a consideration of USD 2.05 billion , and successively closed the sales of IFCo to Koch Industries for USD 3.6 billion , Fertiglobe to ADNOC for USD 3.62 billion , and Clean Ammonia to Woodside for USD 2.35 billion . These are remarkable achievements for the OCI team, further demonstrating our execution capabilities and our commitment to OCI's strategic roadmap for value creation. We believe these transactions provide highly valuable liquidity for significant capital returns to shareholders as a priority, alongside future investment capacity.
Following these milestones, OCI will pay an interim extraordinary distribution of EUR 14.50 per share in aggregate ( ~USD 3.3 billion ) on 14 November 2024 to shareholders of record as of the close of business on 29 October 2024 . The distribution will be made as a repayment of capital or, at the election of the shareholder, as a payment from the profit reserve. This brings total distributions to OCI shareholders in the past four years to USD 5.4 billion . Looking back at our history as a listed vehicle since 1999, OCI has returned more than USD 20 billion to its shareholders via buybacks, share and cash distributions, representing an IRR of approximately 40%. We will continue to build upon this track record and seek to deliver sustainable value creation for our shareholders, partners and employees.
OCI expects to make an estimated further extraordinary distribution of approximately USD 1 billion through a repayment of capital during H1 2025. This will be subject to continued progress on the execution of the announced transactions and the strategic review.
Finally, we were deeply impacted by the tragic incident in early October at the Beaumont Clean Ammonia site, which resulted in the death of a subcontractor. The safety and well-being of all employees and contractor employees is of paramount importance to OCI, and we are cooperating fully with the local authorities to investigate and understand the circumstances regarding the incident. Our thoughts and deepest condolences remain with our colleague's family, friends, and local communities."
Further to the announcement of the expected divestiture of OCI's equity holdings in OCI Methanol, this segment is now classified as Discontinued Operations. Discontinued Operations for the third quarter of 2024 also include results for IFCo, Fertiglobe and OCI Clean Ammonia for the period preceding the closing of the respective transactions. Continuing Operations as presented in this trading update reflects costs associated with the Corporate Entities and the operational performance of the European Nitrogen segment.
This report contains unaudited third quarter highlights of OCI Global ('OCI,' 'the Group' or 'the Company'), a public limited liability company incorporated under Dutch law, with its head office located at Honthorststraat 19, 1071 DC Amsterdam, the Netherlands .
OCI Global is registered in the Dutch commercial register under No. 56821166 dated 2 January 2013 . The Group is primarily involved in the production of nitrogen-based fertilizers and industrial chemicals.
The reported data in this report have not been audited by an external auditor.
On 12 November 2024 at 15:00 CET ( 14:00 GMT ), OCI will host a conference call for investors and analysts. Investors can find the details of the call on the Company's website at www.oci-global.com .
This press release contains inside information as meant in clause 7(1) of the Market Abuse Regulation.
Learn more about OCI at www.oci-global.com . You can also follow OCI on LinkedIn .
OCI Global Investor Relations: Sarah Rajani , CFA
Email: sarah.rajani@oci-global.com
OCI stock symbols: OCI / OCI.NA / OCI.AS
[1] Continuing Operations net debt of USD 2,194 million as of 30 June 2024 has been restated for the deconsolidation of OCI's Methanol business
[2] Production of lower carbon ammonia is conditional on supply of carbon abated hydrogen and ExxonMobil's CCS facility becoming operational
[3] Including OCI's 50% share of Natgasoline volumes
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