OCI (OCI) Q4 2024 earnings summary

Executive summary

• Completed major divestments, including IFCO, Clean Ammonia, Fertiglobe, and pending Methanol sale, raising over $11.6 billion in gross proceeds and transforming the business structure.

• Returned $3.3 billion to shareholders in Q4 2024, with a further $1 billion extraordinary distribution planned for Q2 2025.

• Corporate headcount reduced by 70% from 2023 peak as part of a transition to a leaner organization.

• Clean Ammonia project remains on track for H2 2025 completion, with $954 million spent and 76% construction progress.

• Leadership changes included the appointment of Hassan Badrawi as CEO and Beshoy Guirguis as CFO in October 2024.

Financial highlights

• FY 2024 total operations revenue was $4.1 billion, with adjusted EBITDA of $826 million; net profit attributable to shareholders was $4.97 billion, driven by one-time gains from asset sales.

• Net cash position improved to $1.37 billion at year-end 2024, compared to net debt of $2.2 billion in June 2024.

• Free cash flow for FY 2024 was negative $498.8 million, reflecting large capital distributions and project investments.

• Adjusted EBITDA margin for FY 2024 was 58%, up from 52% in FY 2023.

• H2 2024 basic EPS was $23.54, compared to a loss of $1.09 in H2 2023, reflecting one-time gains.

Outlook and guidance

• European business expected to benefit from lower gas prices, improved fertilizer pricing, and regulatory changes such as CBAM and EU tariffs.

• Clean Ammonia project expected to complete in H2 2025, with total investment of ~$1.55 billion.

• Sale of OCI Methanol to Methanex expected to close in Q2 2025, with $1.6 billion in gross proceeds anticipated.

• Further extraordinary shareholder distribution of up to $1 billion planned for Q2 2025, subject to approvals.

• OCI expects to beat its corporate cost target of $30–$40 million run-rate by end of 2025.