Decarbonizing Maritime Transport
Capital Allocation Targets
Maintaining strong capital discipline
Total Capex Spend (US $m)
1,200
1,000
800
600
400
200
Total Capacity (Mtpa)
18
Total Capex
Production capacity
15
12
9
6
о
3
0
0
2015
2016
2017
2018
2019
2020
2021e
Prioritizing ESG projects with a short payback period 1,2
Emissions impact, % of total OCI baseline
100
10
1
Demand pull and customer willingness to pay
Expected NPV positive
initiatives
Regulatory support/framework
Expected initiatives
needing subsidies
Legend
Size relative to
investment requirement
Joint venture projects
OCI projects
OCI projects with low/no
CAPEX (e.g. operational
excellence)
We can achieve a large proportion of our ESG targets and generate positive returns with
limited incremental capital spend :
。 45% of our GHG reduction commitment is zero to low capital expenditure, including
accelerated operational excellence, switch to renewable energy and expansion of low
carbon product portfolio
• >$75 million p.a. additional EBITDA to be delivered over 3 - 5 years
о We maintain strong focus on low capex / asset light solutions through partnerships
(for example waste gasification and hydrogen offtake)
о
Projects with immediate net-saving returns have been identified across our portfolio
and are being implemented
No significant capital spending on developing opportunities in marine fuels
If any capital is deployed on ESG projects, this will be likely from 2024 onwards, no
significant impact 2021 - 2023 unless we see high return opportunities earlier
OCI maintains an IRR threshold of >12 - 14% unlevered with continued focus on
deleveraging and cost optimization
。 We have identified many projects which can become attractive depending on
incentives and market developments
о
No decisions made with respect to projects, this will be based on subsidies,
government regulations, etc.
。 IRR/NPV threshold exists for energy efficiency projects too and we will be opportunistic
Additional options can become cost-effective depending on incentives (incl.
regulatory frameworks, subsidies, product premiums and market environment)
0.1
Low
Mid
High
Technical/financial feasibility
OCI has a flexible dividend policy designed to balance the availability of funds for
dividend distribution with pursuing growth opportunities, while maintaining, as a priority,
its target of 2x net leverage through the cycle and achieving an investment grade profile
OCI
1. NPV calculated assuming a 12% floor, an upward sloping CO2 price in EU, no subsidies and no pass-through of cost to customers
2. Key parameters for sensitives included natural gas, power, carbon prices and potential subsidies
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