OCI (OCI) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked by progress on portfolio transformation, including resolving the Natgasoline dispute and advancing the Beaumont New Ammonia plant, set for completion later in 2025.

• Distributed USD 1.0 billion to shareholders in May, totaling USD 6.4 billion over four years, reflecting disciplined capital returns.

• Secured a binding support agreement with bondholders for 2033 notes, facilitating an orderly pay down post-Methanol sale.

• Focus remains on completing Beaumont New Ammonia and closing the Methanol transaction in Q2 2025.

Financial highlights

• Continuing Operations Adjusted EBITDA remained negative in Q1 2025 but improved sequentially due to cost reductions.

• European Nitrogen segment profitability was pressured by higher gas prices and planned turnarounds but stayed profitable.

• Discontinued Operations (OCI Methanol) showed resilience, aided by higher methanol prices and reduced hedge losses.

• Net cash from Continuing Operations was USD 1,033 million as of 31 March 2025, down from USD 1,371 million at year-end 2024.

Outlook and guidance

• Beaumont New Ammonia plant on track for completion and commissioning later in 2025.

• Methanol business sale to Methanex expected to close in Q2 2025, pending regulatory approvals.

• Corporate cost structure streamlining expected to beat the USD 30–40 million run rate target by end of 2025.