OCI Global Energy Transition Leadership slide image

OCI Global Energy Transition Leadership

0 10 20 30 40 40 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Henry Hub -TTF 50 70 80 60 60 TTF futures are $17/MMBtu for Q4'2023- 2024 with upside risk next winter Jan-18 May-18 Elevated Costs for Marginal Producers Supportive of Nitrogen Prices Global Feedstock Prices 2017-2023F, $/MMBtu Cash Costs per ton of Ammonia 2017-2023F, $/t Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Sep-22 Jan-23 Ukraine Chinese anthracite coal price -Asia LNG Global differentials between US, North Africa and EU marginal costs remain wide 3,000 May-23 Sep-23 0 Jan-16 500 Apr-16 1,000 1,500 2,000 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 2,500 Apr-18 Jul-18 Arbitrage between international ammonia pricing & domestic EU costs remains volatile and further rationalisation of capacity is expected: Three permanent closures in Europe in 2022/2023, with the possibility of further curtailments in EU & other regions. Source: Bloomberg, CCTD, CRU, OCI, Gas futures as of 23 October 2023 (1) Cash costs includes feedstock costs, and variable costs such as labour, SG&A, power. It does not include debt servicing or maintenance capex (2) Average North American production assumed to be 37.2 MMBtu per ton of ammonia for feedstock; Average European production assumed at 35 MMBtu per ton of ammonia for feedstock; Average Ukrainian production assumed at 38 MMBtu per ton of ammonia for feedstock; Chinese production assumed to be 1.12 tons of coal for feedstock. Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 United States -Europe -Ukraine Chinese marginal costs Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 222 22 Global OCIGI
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