OCI benefits from well-priced fertilizers

OCI, producer of fertilizers, among other things, has seen its profit figures for 2021 improve significantly compared to the previous year. Although the chemical group saw its sold volumes decline slightly, higher selling prices provided a significant boost to the result.

OCI's revenue grew 82% from $3,5 billion in 2020 to $6,4 billion in 20201. EBITDA increased 190% to approximately $2,5 billion. Market prices for many of the goods produced by OCI, including fertilizers, rose sharply. Despite the high prices, the company foresees a strong demand for fertilizers until at least 2023. The good market conditions for many agricultural products contribute to this.

Shareholder will benefit
The shareholders of OCI also benefit from the strong results. The company plans to pay a dividend of €2021 per share for the second half of 1,45. This equates to a total amount of $350 million. Due to recent strong results, it now wants to return at least $400 million to shareholders on an annual basis, possibly more cash flow permitting. As a result, according to OCI, owners of pieces can also benefit if the company has the wind in its sails.

OCI is also optimistic for the first half of 2022. Favorable conditions on the agricultural markets, high prices for ammonia, methanol and melamine in combination with well-filled order books provide for this optimism.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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