Fertiglobe, an ADNOC and OCI company, announced that its Board of Directors sanctioned an interim cash dividend of $150 million for the first half of 2024, which translates to AED551 million or 6.6 fils per share. Shareholders on record as of October 10, 2024, will receive this dividend, scheduled for disbursement in October 2024.
Financial strength and growth opportunities
According to a statement, the company’s strong balance sheet and effective cash flow management continue to enable Fertiglobe to pursue selective, value-enhancing growth opportunities while maintaining a focus on shareholder returns.
With this latest dividend declaration, Fertiglobe will have distributed a total of $2.42 billion in dividends since its initial public offering (IPO) in October 2021, highlighting one of the highest dividend yields and total return rates in its industry.
Read more: Fertiglobe’s full-year net profit up 75 percent to $1.3 billion in 2022
Commitment to shareholder returns
The announced interim dividend indicates an annualized dividend yield exceeding 5 percent, further reinforcing the company’s commitment to delivering solid returns to its investors.
Strong cash flow generation
Ahmed El-Hoshy, CEO of Fertiglobe, remarked that the approval of the $150 million interim dividend exemplifies the company’s resilient business model and its ability to generate strong cash flows despite market fluctuations and a challenging operational environment. He added that this dividend is supported by proactive value creation initiatives launched in 2024, as they continue to make significant progress toward their strategic goals.
Future growth and innovation
El-Hoshy also mentioned that Fertiglobe is entering a crucial growth phase. The company is focusing on developing a sustainable hydrogen value chain. Additionally, it aims to expand its global footprint in ammonia and clean hydrogen solutions. He emphasized that the company is focused on innovation and sustainability. This focus positions them well to seize new opportunities. Looking ahead, he stated that they remain committed to digitizing operations. The company further plans to leverage AI and drive innovations to enhance cost efficiencies. This approach ensures sustainable and long-term value for their shareholders, he noted.
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