Fertiglobe Financial Overview slide image

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 • 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 о In Algeria and the UAE, gas prices are fixed with annual escalation factors4 о 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. 27
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