OCI Global Reports Q2 2024 Results

02 Aug 2024 20:21 CEST

• OCI Global (Euronext: OCI) reported total Q2 2024 revenues of $1,211 million, a 12% reduction YoY, and total
  Q2 2024 adjusted EBITDA of $296 million, a decrease of 9% YoY. The main reasons for the decline YoY were
  lower nitrogen prices globally, contractually higher gas prices in the Middle East, and a planned maintenance
  shutdown at Natgasoline during the quarter. The decline was mitigated by strong operational performance across
  other continuing operations as evidenced by 90%+ asset utilisation rates ("AUR") across both OCI Beaumont’s
  and OCI European Nitrogen’s facilities throughout the quarter. Operational improvements were further supported by
  $22 million of tailwinds from lower natural gas prices YoY globally and reduced hedging losses in the US.
   
• Total reported adjusted EBITDA before realized losses from natural gas hedges of $38 million was $334 million
  in Q2 2024. This compares to total reported adjusted EBITDA before realized losses from natural gas hedges of
  $374 million in Q2 2023.
   
• Continuing operations adjusted EBITDA was $54 million in Q2 2024 compared to $5 million in Q2 2023. Excluding
  realized gas hedge losses, adjusted EBITDA for continuing operations was $80 million in Q2 2024 compared to
  $38 million in Q2 2023. Notwithstanding a planned turnaround at Natgasoline in the quarter, continuing operations
  benefited from a marked improvement in own-produced sales volumes of +10% YoY at OCI European Nitrogen
  and +14% YoY at OCI Beaumont, the latter of which operated at an average 96% AUR in Q2 2024. Normalized
  for lost volumes attributable to the Natgasoline turnaround as well as the aforementioned realized gas hedge
  losses, continuing operations would have posted $113 million in adjusted EBITDA in Q2 2024, demonstrating strong
  earnings potential on a run-rate basis.
   
• Total operating free cash flow was $108 million in Q2 2024. Net debt from total operations was $3,911 million on
  30 June 2024, with total net leverage on a trailing 12-month adjusted EBITDA of 3.4x on a consolidated basis.
   
• Continuing operations free cash flow in Q2 2024, including cash up streamed from IFCo, was $6 million. As a
  reminder, OCI is entitled to 100% of IFCo's cash generation until the transaction closes.
   
• Underlying corporate costs in Q2 2024 were $16 million, reduced from $24 million in Q1 2024. OCI reaffirms its
  corporate cost run-rate target of $30 million to $40 million to be achieved by 2025.

q2-2024-results-report-vf020824.pdf