Fertiglobe Financial Overview
Fertiglobe Attractively Positioned on Urea and Ammonia Cost Curves
Benefit from attractively priced, long-term feedstock gas contracts and low conversion costs
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Long-term attractive gas supply agreements with EGPC in Egypt, Sonatrach in Algeria, and ADNOC in Abu Dhabi supporting advantageous cost position
Young asset base with high gas efficiency and high reliability, resulting in lower costs per tonne
Local currency denominated costs, allowing for lower overhead costs
Operations located in tax-advantaged regions, resulting in a low effective cash tax rate
Freight and logistical advantage to most major markets allow Fertiglobe to capitalize on higher pricing in markets during peak demand periods
Situated in the 1st - 2nd quartiles of the ammonia and urea cost curves for 2022
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In Algeria and the UAE, gas prices are fixed with annual escalation factors4
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In Egypt, gas prices are linked to the weighted-average selling price of urea and ammonia as part of a revenue sharing mechanism
2022 Fertiglobe Situated in 1st - 2nd Quartiles of Ammonia Cost Curve ($/t) 1,2,3
Y axis: Ammonia CFR delivered costs in 2022; X axis: Exports by Region, Million mt, Ammonia
2022 Fertiglobe Situated in 1st - 2nd Quartiles of Urea Cost Curve ($/t)
Y axis: Urea CFR delivered costs in 2022; X axis: Exports by Region, Million mt, Urea
1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
1st Quartile
|
2nd Quartile
3rd Quartile
I
4th Quartile
2,000
1,400
1,600
An ADNOC and OCI Company
at 2020 prices
at current prices
Fertiglobe Fertiglobe
An ADNOC and OCI Company
1,200
Fertiglobe
An ADNOC and OCI Company
An ADNOC and OCI Company
at 2020 prices
Fertiglobe
at current prices
1,000
1,200
800
600
800
400
400
200
0
0 1 2
3
4 5 6 7
8
Feedstock Costs
9 10 11 12 13 14 15 16 17 18 19
Conversion Costs
024 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48
(3)
FOB costs
Feedstock
Conversion
(3)
Cost to FOB
Fertiglobe
An ADNOC and OCI Company
Profit sharing mechanism with gas suppliers ensures top quartile positioning through the cycle
Source: Company Information, CRU 2022 forecast as of September 2022
Notes: (1) Realized weighted average costs in H1 2022 based on respective gas price arrangements in Abu Dhabi, Algeria and Egypt. Gas price arrangements include cost escalation factors and in Egypt increments above certain product price levels
(2) Based on blended CFR cost for Fertiglobe; (3) Weighted average freight costs (cost to CFR) of top three global export destinations; (4) In Algeria, as per the price stabilization mechanism, which is subject to revision in Q4 2023, incremental profits are paid to
Sonatrach, referred to as Ecremage.
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