Fertiglobe x ADNOC

Dear Fertiglobe shareholders,

On October 15th marks an important milestone in Fertiglobe’s story as we celebrate the first day of our next phase of growth.

It is with great pride that we announce the successful completion of ADNOC’s acquisition of OCI’s entire 50% shareholding in Fertiglobe. ADNOC now holds an 86.2% majority stake in Fertiglobe, while the remaining 13.8% continues to trade on the Abu Dhabi Securities Exchange. Today’s announcement also marks the full separation of Fertiglobe’s operations from OCI.

ADNOC’s acquisition of Fertiglobe is a testament to the strength of our business and the exceptional work carried out by the entire Fertiglobe team to create a resilient company, positioned as the leading seaborne exporter of urea and ammonia combined and a global pioneer in low-carbon ammonia.

Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, exporting to 53 countries with a ~10% collective market share of global trade in these products. This acquisition represents a significant milestone in ADNOC’s expansion of its low-carbon fuels business and supports its goal to become a top five global chemicals player.

Our Next Chapter of Growth

The completion of the ADNOC and OCI transaction marks the beginning of a transformative journey that will cement our role both as a vital player in the global energy transition, as well as within ADNOC’s ambitious global chemicals growth strategy and low-carbon fuels expansion plans.

Fertiglobe will become the platform for ADNOC’s growth in fertilizer and low-carbon ammonia. To deliver value accretive and disciplined growth for Fertiglobe, ADNOC will transfer its stakes in existing and future low-carbon ammonia projects to Fertiglobe at cost and when ready for startup, creating a world-class growth platform for low-carbon ammonia as a key energy transition fuel. This includes its two lower carbon ammonia projects in Abu Dhabi and other projects in its global portfolio. On a consolidated basis, the two projects in Abu Dhabi would add ~2 mtpa, more than doubling Fertiglobe’s current merchant ammonia capacity of 1.6 mtpa and increasing its total sellable capacity to 8.6 mtpa of net ammonia and urea combined, in addition to other announced global projects.

Additionally, robust double-digit Internal Rate of Return (IRR) for all future growth projects will be the minimum target for the company as it seeks disciplined and value-accretive growth to capitalize on the expected global growth in low-carbon ammonia demand to 24 million tons by 2032, from close to zero now.

As an integrated part of ADNOC’s business ecosystem, Fertiglobe will also leverage ADNOC’s extensive global customer network, which will provide growth opportunities in new markets and products. With our young asset base, Fertiglobe can build on ADNOC’s leadership in artificial intelligence (AI) and energy transition technologies to enhance efficiencies and maximize value for our shareholders.

CEO appointment

It is my privilege to continue this journey with Fertiglobe, as the Company enters its next stage of growth, with the support and guidance of our new majority shareholder. Hence, effective today, I have stepped down from my role at OCI Global, to continue the journey I started in 2021, as Fertiglobe’s Chief Executive Officer.

During these past years, we have reached incredible milestones, including our IPO in 2021, growing our platform and cementing Fertiglobe’s position as a leader – not just in nitrogen fertilizers but also in low-carbon ammonia. I am proud of the organization that we have built and the crucial role we play in bringing us closer to a more sustainable future.

I remain focused on delivering on our ambitious targets and maximizing value for all shareholders and I am thankful for the opportunity to continue leading Fertiglobe into the next chapter with full dedication and commitment.

Future focus

As we look to the future, our immediate priorities are to maintain our focus on safety as the highest priority, to ensure that our operations continue to run normally and enable seamless business continuity at Fertiglobe, while exploring synergies between both organizations to enhance efficiencies, reduce emissions and meet the market demands of tomorrow.

We will be sharing a more detailed value creation and growth strategy at our Capital Markets Day (CMD) in Q1 2025, and I look forward to continuing our journey together as we deploy our team’s extensive expertise and capabilities to pursue growth, value creation and create a more sustainable future.