Profercy
Profercy
Global fertilizer prices and market analysis
  • Home
  • Nitrogen
  • Phosphate
  • Potash
  • About Us
  • News
  • Contact
  • Home
  • Nitrogen
  • Phosphate
  • Potash
  • About Us
  • News
  • Contact

Nitrogen fertilizer trader Fertiglobe sees Q1 bottom line pinched by falling prices

May 9, 2023Leave a commentAmmonia, General, Nitrogen

Fertiglobe posted single-digit increases in first quarter own-produced ammonia and urea sales volumes to 236,000t and 1.13m. tonnes, respectively, although lower prices meant adjusted net profit fell sharply to $135 million from $361 million in the year-ago period.

The world’s largest seaborne exporter of urea and ammonia combined attributed the weaker performance to softer European gas prices, weather-related demand delays in some key regions and the deferral of 100,000t in urea shipments to Ethiopia at a weighted average price of $700pt.

Traded third party volumes decreased 40% year-on-year to 165,000t from 276,000t in the corresponding period of 2022.

Looking forward, the Abu Dhabi-headquartered supplier expects feedstock pricing to remain well above historical averages, with 2023–2025 forward European gas prices implying marginal cost support levels for ammonia of around $815t, including CO2, for next winter and 2024.

“[This] should result in closures of European marginal production if pricing remains below cost for a sustained period of time,” noted the strategic partnership between Adnoc and OCI Global.

“The nitrogen outlook remains favourable in the medium to longer term,” it added. “New supply that commissioned in 2022, has been absorbed by the market, and limited major greenfield supply additions are expected in the next four years.

“Agricultural demand is buoyed by attractive farmer economics, incentivising nitrogen fertilizer application to replenish decade-low grain stocks.”

The company also announced the production of on-spec green ammonia at its facilities in Egypt in early 2023, with a final investment decision expected before the end of 2023.

The Red Sea plant may eventually produce approximately 15,000t per year of green hydrogen as feedstock for up to 90,000t a year of green ammonia from Fertiglobe’s existing ammonia plants at Ain Sokhna.

Meanwhile, OCI Global posted a 41% year-on-year slide in Q1 revenues to $1.4 billion, with adjusted EBITDA down 65% on a year-ago basis to $336 million.

The company cited significantly lower selling prices and volumes and realised gas hedging losses of $98 million – partly offset by lower gas prices – and an estimated $77 million impact from unplanned outages at its facilities in Texas.

OCI added its 1.1m. tonne/year blue ammonia project in that US Gulf state is on track to start production in early 2025.

Share this content
LinkedInGoogle+TwitterFacebook
Related News
Phosphates: DAP/MAP supply – movers and shakers in 2023
August 29, 2023
Urea: China’s comeback aids India in securing 1.76m. tonnes, undermining bull rally and raising doubts over Q4 support levels
August 18, 2023
Bullish sentiment persists; urea values rally buoyed by supply challenges, Indian demand and strong energy and grain fundamentals
July 26, 2023
Nitrogen Index advances despite ammonia market woes
June 30, 2023
Yara enticed by new blue ammonia capacity in the US as European plants face uncertain future
June 26, 2023
Urea prices bolstered by supply cutbacks, Chinese export restraint and short covering for Europe
June 23, 2023
Leave Comment

Cancel reply

Your email address will not be published. Required fields are marked *

clear formSubmit

Recent Insights
  • Phosphates: DAP/MAP supply – movers and shakers in 2023
  • Urea: China’s comeback aids India in securing 1.76m. tonnes, undermining bull rally and raising doubts over Q4 support levels
  • Bullish sentiment persists; urea values rally buoyed by supply challenges, Indian demand and strong energy and grain fundamentals
  • Nitrogen Index advances despite ammonia market woes
  • Yara enticed by new blue ammonia capacity in the US as European plants face uncertain future
Archives
Topics
  • Ammonia (19)
  • Blue and Green Ammonia (2)
  • General (265)
  • Nitrogen (302)
  • Phosphate & NPKs (12)
  • Potash (4)
  • Profercy World Nitrogen Index (157)
  • Uncategorized (4)
Contact Profercy

Sales / Subscriptions: +44 (0)208 1234 418
Market / Customer Helpline: +44 (0)1372 386205
Press / Media Enquiries: Contact Us

Profercy Ltd,
Riverbridge House
Fetcham Grove
Guildford Road
Leatherhead
Surrey KT22 9AD
United Kingdom

Send an email

Profercy Hub Login

Latest Profercy Updates
  • Phosphates: DAP/MAP supply – movers and shakers in 2023
  • Urea: China’s comeback aids India in securing 1.76m. tonnes, undermining bull rally and raising doubts over Q4 support levels
  • Bullish sentiment persists; urea values rally buoyed by supply challenges, Indian demand and strong energy and grain fundamentals
Latest Global News
  • Total volumes confirmed in the IPL urea purchasing tender hit 1.5m. tonnes this morning – awards due to follow soon… https://t.co/XFFRjJPrKD
    21st Oct 2022 07:49 UTC
  • Nitrogen markets are responding to the latest developments in Ukraine. The prospect of sanctions on Russian materia… https://t.co/o1eflZDN02
    24th Feb 2022 14:30 UTC
  • Urea - India's anticipated return to the market has been confirmed today with IPL announcing a purchasing tender to… https://t.co/pPnaDGeAkO
    29th Jan 2022 09:04 UTC
Copyright © 2023 Profercy Ltd | Registered in England & Wales. Company No. 03220009.

Terms & Conditions - Data & Privacy - Website by Spinach

×
Before you leave...
Would you like to download a free copy of our reports? We have a free sample of each report for you. You can also take a 2 week free trial to see the value we deliver. 

You are giving us consent to send you Profercy reports and information about our services. Privacy Policy