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AMSTERDAM / WAM
OCI N.V. and Abu Dhabi National Oil Company (Adnoc), on Monday announced the completion of their transaction to combine Adnoc’sfertiliser business into OCI’s Middle East and North Africa (Mena), nitrogen fertiliser platform, creating a world-leading joint venture.
The combined company, which has been named Fertiglobe and is headquartered in the international financial centre Abu Dhabi Global Market, has over $1.7 billion of annual revenues based on 2018 pro forma figures. OCI will fully consolidate the combined business.
Fertiglobe will be the largest export-focused nitrogen fertiliser platform globally, and the largest producer in the Mena region with a production capacity of five million tonnes of urea and 1.5 million tonnes of merchant ammonia. It is underpinned by a young asset base and a robust storage and distribution infrastructure with access to key ports on the Mediterranean, Red Sea and Arabian Gulf. Fertiglobe’s complementary production and distribution locations bring geographic diversity and enhanced market access, benefitting both existing and new customers.
Following close of transaction, Fertiglobe will focus on integration of two businesses, which is expected to create significant value through the unlocking of commercial and technical synergies.
Commenting on the announcement, Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State, Adnoc Group CEO, and Chairman of Fertiglobe, said, “The efficiency we have shown in completing this milestone transaction so quickly is a strong indication of the way that Fertiglobe will operate in the future and a hallmark of what we hope to achieve by combining Adnoc’sfertiliser platform and OCI’s Mena-based fertiliser assets.
“We have laid careful groundwork to extract and promote synergies throughout our strategically placed production assets and distribution network,” he continued, adding, “Working alongside our partner OCI, we look forward to significantly growing our newly combined fertiliser businesses, accessing new markets and bringing significant benefits to all our customers. The close of this transaction is yet another example of the further progress that ADNOC is making in delivering on its 2030 strategy and specifically its ambitions to expand its Downstream portfolio.”
NassefSawiris, CEO of OCI N.V. and CEO of the new joint venture commented, “I am very pleased that we have completed this landmark transaction in such a short time frame, which brings together two like-minded partners. It underscores our commitment to create value in the fertiliser industry, at the same time helping develop a more efficient market place for our customers. This platform has a solid financial profile and has significant potential for future growth and value creation, with the support and under the guidance of its two key shareholders”.
This transaction will place the companies EBIC, EFC, Sorfert, and Fertil (formerly AdnocFertilisers) under the ownership of the joint venture Fertiglobe, an Adnoc-OCI company.
Adnoc distributes dividends
ABU DHABI / WAM
The Adnoc Distribution Board of Directors approved the distribution of dividends to shareholders for the first half of 2019, valued at AED0.0955 per share and totalling AED1.194 billion.
The board made the approval during its meeting on Sept 29 in Abu Dhabi, which was announced on website of the Abu Dhabi Securities Exchange.
The last day to buy shares that are eligible to receive proceeds will be on 7th October 2019, and share trading will commence on 8th October while on 9th October, shareholder registration will close.
The company’s proceeds increased to AED1,172.8 million, or AED0.09 per share, in the first half of 2019, compared to AED1,123.3 million in the same period in 2018.
The increase in the company’s proceeds during the first half of this year was supported by an increase in its profit margin to 24.1 percent, compared to 23.8 percent in the first half of 2018. Its overall expenses also decreased by seven percent, which was aided by a decrease in administrative expenses by 13 percent, totalling AED1,293.3 million, compared to AED1,492.2 million during the same period last year.