OCI (OCI) Q2 2025 earnings summary

Executive summary

• H1 2025 featured significant portfolio transformation, including the $1.6 billion sale of the methanol business to Methanex, making OCI the second largest Methanex shareholder and generating $11.6 billion in total gross proceeds from the strategic review.

• $1.7 billion was distributed to shareholders year-to-date, totaling $7 billion over four years, with all 2033 bonds fully retired and outstanding debt eliminated.

• Strategic review of European nitrogen assets advanced, with a potential sale update expected by year-end.

• Construction of Beaumont New Ammonia (now Woodside) is nearly complete, with first ammonia expected by late 2025 and handover in early 2026.

• Early-stage merger discussions with Orascom Construction aim to create a leading infrastructure and investment platform anchored in Abu Dhabi.

Financial highlights

• H1 2025 revenue from continuing operations was $567 million, up 11% year-over-year.

• Adjusted EBITDA for continuing operations was $1 million, down from $7 million year-over-year; European Nitrogen adjusted EBITDA was $21 million, down from $48 million.

• Net loss attributable to shareholders from continuing operations was $331 million, impacted by non-cash FX losses, $98 million Beaumont cost overrun, and bond repayment adjustments.

• Free cash flow from continuing operations was negative $82.8 million, reflecting higher maintenance capex and strategic review costs.

• Net cash position at June 30, 2025, was $1,030 million, down from $1,371 million at year-end 2024.

Outlook and guidance

• European Nitrogen business outlook is positive, supported by healthy supply-demand, normalizing gas markets, and new EU regulations including CBAM and tariffs on Russian imports.

• First ammonia from Beaumont New Ammonia expected late 2025, with project handover in early 2026; total project investment now estimated at $1.65 billion.

• Update on European nitrogen asset sale anticipated by year-end.

• Nitrate and premium product prices expected to remain strong, supported by demand, regulatory changes, and decarbonization trends.