Company made a net profit attributable to shareholders of $343 million in H1 2025, compared to a loss a year earlier
AMSTERDAM: Fertilizer maker OCI Global reported a net profit for the first half of 2025, driven by a major asset sale, but its core European nitrogen business faced pressure from rising gas prices and plant outages.
The company, which is in the midst of a strategic overhaul, said on Wednesday it made a net profit attributable to shareholders of $343 million in H1 2025, compared to a loss a year earlier. The result was buoyed by a $688 million gain from the sale of its OCI Methanol unit to Methanex Corporation.
However, the performance of its continuing operations – primarily its European Nitrogen business – highlighted ongoing challenges. Revenue from continuing operations rose 11% year-on-year to $567 million, but adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to $1 million from $7 million.
The European Nitrogen unit reported a 56% drop in adjusted EBITDA to $21 million, as higher product prices were outweighed by a 38% jump in European gas prices and lower sales volumes due to plant outages.
“Notwithstanding higher product prices… H1 2025 operational profitability was challenged,” the company said in a statement.
OCI confirmed it has “progressed discussions with potential buyers” for its European Nitrogen assets and a sale could be concluded by the end of the year.
The company has been streamlining its portfolio to focus on its growth project in Beaumont, Texas. Total spend on the new ammonia plant reached $1.29 billion as of June 30, with the total investment cost now expected to be approximately $1.65 billion upon completion in the first quarter of 2026.
Following the $1.6 billion methanol business sale, OCI has returned significant capital to shareholders. It distributed $1 billion in May and a further $700 million in September, bringing total distributions to around $7 billion since 2022. The company has also repaid all its outstanding debt.
Looking ahead, OCI is pursuing a potential merger with Egypt’s Orascom Construction to create a diversified infrastructure and investment platform anchored in Abu Dhabi.
“Looking ahead to this new chapter in OCI’s journey, we believe the contemplated fusion of capital and industry expertise will allow us to strengthen and grow a diversified platform,” CEO Hassan Badrawi said.