Skip to content

OCI Global reports Q1 2024 financial results

Read Time: 5 mins

OCI Global reported total Q1 2024 revenues of $1,224 million, marking an 11 percent year-on-year decrease. The total adjusted EBITDA for Q1 2024 was $297 million, reflecting a 12 percent decrease compared to the previous year. These declines were primarily attributed to lower global nitrogen pricing following high product prices in early 2023, though this was partially offset by improved operational performance in Q1 2024 compared to Q1 2023.

The total adjusted EBITDA for the quarter includes $47 million in realized losses from natural gas hedges. Despite these challenges, OCI reported an adjusted net profit from total operations of $36 million in Q1 2024, in contrast to an adjusted net loss of $15 million in Q1 2023. Total operating free cash flow was $73 million for Q1 2024, with net debt from total operations standing at $3,795 million as of 31 March 2024, resulting in a total net leverage on trailing 12-month adjusted EBITDA of 3.2x on a consolidated basis.

The adjusted EBITDA from continuing operations for Q1 2024 was $24 million, a significant improvement compared to a $54 million loss in Q1 2023. This improvement was driven by higher sales volumes in the European Nitrogen and Methanol segments, reduced hedge losses, and improved margins due to lower gas prices.

Business Highlights

In March 2024, OCI began production of AdBlue® (diesel exhaust fluid, DEF) in Europe. With an initial capacity of 300,000 tonnes per annum, OCI Nitrogen’s AdBlue® production aims to meet the growing European demand driven by regulatory requirements to reduce harmful emissions from diesel engines. This initiative is part of OCI’s strategy to diversify and produce higher value products within its nitrogen platform.

Q1 2024 results also reflected positive momentum from OCI’s manufacturing excellence program, which achieved efficiency gains from ongoing investments in the company’s productive assets.

Strategic Review

In December 2023, OCI announced plans to divest its 50 percent equity holding in Fertiglobe Plc and 100 percent of its equity interests in Iowa Fertilizer Company LLC  to Abu Dhabi National Oil Company P.J.S.C. (ADNOC) and Koch Ag & Energy Solutions respectively. These divestments are part of a global strategic review aimed at closing OCI’s HoldCo discount and maximizing shareholder value. The transactions are expected to close in 2024, pending legal and regulatory approvals.

OCI plans to use the $6.2 billion in net cash proceeds from these divestments to significantly reduce debt and fully fund the remaining capital expenditure required for the Texas Blue Clean Ammonia project. Additionally, OCI intends to return at least $3 billion to shareholders following the completion of these transactions.

An extraordinary shareholders meeting held on 25 April 2024 approved the divestment of OCI’s entire equity stake in Fertiglobe to ADNOC and the payment of an extraordinary interim cash distribution of EUR 4.50 per share, subject to the completion of the Fertiglobe divestment. A further extraordinary cash distribution is anticipated following the completion of the IFCo divestment. Regular dividend payments have been suspended during this transition period.

OCI will provide an update on its strategic review at the time of the Q2 2024 results announcement.

CEO Commentary

Ahmed El-Hoshy, CEO of OCI Global, expressed satisfaction with OCI’s Q1 2024 performance, noting the company’s progress in efficiency gains and its global decarbonization strategy. He highlighted improvements in asset reliability and efficiency, which helped mitigate disruptions from unplanned outages and inclement weather. El-Hoshy emphasized OCI’s commitment to manufacturing excellence and operational safety.

Continuing Operations Financial, Operational, and Strategic Highlights

The financial results for FY 2024 and comparative FY 2023 reflect the performance of continuing and discontinued operations separately, following the expected divestitures of OCI’s equity holdings in Fertiglobe, IFCo, and a portion of N-7.

Methanol Segment

OCI’s methanol assets saw a 59 percent year-on-year increase in own-produced sales volumes, reaching 352 thousand tonnes in Q1 2024. Despite winter freeze-related shutdowns in January 2024, operational improvements led to higher asset utilization rates by March. The methanol business generated an adjusted EBITDA of $30 million in Q1 2024, up from $24 million in Q1 2023, although lower than the $62 million adjusted EBITDA in Q1 2023 excluding realized gas hedge losses.

European Nitrogen Segment

The European Nitrogen segment reported Q1 2024 revenues of $257 million and an adjusted EBITDA of $17 million, a significant improvement from the $60 million loss in Q1 2023. Lower nitrogen prices were partially offset by higher volumes and reduced gas hedge losses.

Texas Blue Clean Ammonia Project

OCI’s Texas Blue Clean Ammonia project, expected to be the world’s first large-scale blue ammonia production facility, remains on track for production in H1 2025. With $561 million spent as of 31 March 2024, the project benefits from early mover advantages and is well-positioned for the upcoming Carbon Border Adjustment Mechanism in Europe.

Market Outlook


US methanol prices increased through Q1 2024 due to supply disruptions and higher oil prices, supporting methanol demand. The medium-to-long term outlook for methanol is positive, driven by factors such as the methanol-to-olefin (MTO) production cost advantage and increasing regulatory support for low-carbon fuels.



Ammonia prices stabilized in the latter half of Q1 2024 due to improved demand and supply disruptions. The medium-to-long term demand for ammonia is expected to grow, driven by new applications such as fuel for power generation and maritime bunker fuel.


Strong domestic demand in the US and increased planted crop area have driven urea demand. Long-term demand is expected to outstrip supply growth, supporting urea market resilience.

Nitrates and Other Premium Products

Nitrate markets are expected to strengthen in Q2 2024 with delayed purchase activity completing and an increasing premium over urea. Decarbonization trends favor nitrates due to their higher nitrogen use efficiency and lower CO2 production.

OCI Global remains committed to operational excellence and maximizing value for stakeholders through strategic initiatives and continued investment in its core operations.

For more information visit