Contributors "vertiglob" They agree to distribute a dividend of $200 million for the second half of 2023
ABU DHABI, 30 APRIL / WAM / Vertiglobe held its annual general meeting today, where shareholders approved the company’s audited accounts for the year 2023, and cash dividends worth US$200 million – equivalent to 9 fils per share – for the second half of 2023, bringing the total Dividends for the year 2023 amount to 475 million US dollars.
This is among the highest dividend yield rates in the industry, with US$2,265 million having been returned to shareholders as dividends since the IPO.
His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Board of Directors of Vertiglobe, said: The strong financial performance of Vertiglobe during the year 2023 confirms its ability to continue achieving competitive growth despite the decline in urea and ammonia prices to their normal levels during the year 2023 after witnessing a noticeable increase during In 2022, Vertiglube continues to develop its strategy to enhance low-carbon ammonia production, which is clearly evident in its achievements, such as the delivery of the first shipment of ammonia produced based on renewable energy sources, which is the first of its kind in the world, and we began the pilot application of the first standard carbon capture unit used (CycloneCC) technology, at Vertiglobe facilities in the UAE.
His Excellency added that the distinguished partnership between ADNOC and OCI Global has effectively contributed to Vertiglobe becoming the world’s largest marine exporter of both urea and ammonia, and ADNOC’s increase of its stake in Vertiglobe is a testament to the success of the company’s performance and the efficiency of its future growth strategy. And development, and its ability to play an important and vital global role in meeting the growing demand for low-carbon ammonia produced with renewable energy, and with ADNOC’s support, we are confident that Vertiglobe is able to take advantage of significant growth opportunities that will enhance its leadership in the global market.
Ahmed Al-Hoshi, CEO of Vertiglobe, said that the company has achieved great and important achievements in terms of operational, commercial and sustainability business in 2023, which enhances its ability to expand its activities and business and achieve new growth goals in the coming years, expressing the company’s pride in its ability to keep pace with market changes. And its challenges, which enable us to achieve the best results for shareholders, in addition to focusing on sustainable growth and our ambitious plans to reduce carbon emissions.
Al-Hoshi stressed that Vertiglob was able to adapt to the market challenges in 2023 and maintain the strength and sustainability of its performance thanks to the continued implementation of the manufacturing improvement plan, which is expected to achieve additional annual growth in earnings before interest, taxes, depreciation and amortization by 2025. In addition, the program achieved… The company achieved cost improvements by 51% of its targeted annual savings of US$50 million just six months after its launch, as it will remain an important element in supporting the generation of free cash flows for the company.
In 2023, Vertiglob’s focus on efficiency and excellence in operational processes led to a 5% increase in the volume of sales produced by the company. This increase, along with the continuous improvement in cost efficiency, led to achieving revenues worth $2,416 million during the year 2023. Adjusted EBITDA of $1,004 million, with adjusted net income of $363 million and an EBITDA margin of 42%.
In December 2023, ADNOC announced its intention to purchase OCI’s 50% stake in Vertiglube for $3.62 billion. The deal, which will make ADNOC the majority shareholder in Vertiglube, supports ADNOC’s ambitious strategy. To grow its chemicals business, and strengthen its plans to create a global growth platform for ammonia production.
This deal also supports Vertiglobe’s future growth plans, accelerates its endeavors to capitalize on new product opportunities and enter developing markets, and expands its focus on clean ammonia as a promising hydrogen transport fuel.
After completing the deal, ADNOC’s stake in Vertiglob will rise to 86.2%, while the percentage of free shares traded on the Abu Dhabi Securities Market will remain at 13.8%. The deal is expected to be completed this year, after meeting all legal conditions and obtaining approvals from the authorities. concerned organizational.
Vertiglob’s manufacturing optimization plan aims to raise additional annual EBITDA by at least $100 million by the end of 2025 compared to 2023, reflecting the company’s commitment to sustainable growth and shareholder value creation. The manufacturing optimization plan and cost optimization program are expected to contribute to an overall increase in profits of approximately 15% by the end of 2025 compared to adjusted EBITDA in 2023.
Vertiglob makes continuous efforts to employ technology, enhance innovation processes, and develop digital solutions in all of its work, and is keen to integrate artificial intelligence into its operations to achieve the best results, improve efficiencies, and reduce emissions.
Thanks to the availability of free cash flows and a strong balance sheet, Vertiglobe continues to be committed to achieving a balance between dividend distribution and strategic spending on value-added projects, and the credit rating agencies Fitch and Standard & Poor’s have also placed Vertiglobe on positive credit watch in the first quarter of the year 2024, in Waiting for the completion of the transfer of ownership to ADNOC, which will strengthen its position and raise its investment grade rating.
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