- Geopolitical tensions increased European natural gas prices by 60%, affecting nitrogen production costs.
- OCI's strategic review generated USD 11.9 billion, enabling USD 7 billion in shareholder distributions.
- OCI sold its global methanol business to Methanex and plans to divest its ammonia distribution to AGROFERT by H1 2026.
- OCI aims to merge with Orascom Construction, but a court ruling temporarily halts the shareholder vote.
Geopolitical Impact
Recent geopolitical developments in the Middle East have led to a 60% surge in European natural gas prices, significantly increasing production costs for nitrogen producers and causing market volatility. While fertilizer and AdBlue prices have risen, there is a lag between feedstock cost changes and selling prices, making it difficult to assess the impact on OCI Nitrogen's cost recovery.
Strategic Divestments
In 2025, OCI completed the sale of its global methanol business to Methanex Corporation and is set to divest its ammonia distribution and terminal business to AGROFERT by H1 2026. These moves are part of OCI's broader strategy to streamline operations and focus on core areas.
Financial Performance
OCI Global reported FY 2025 total operations revenue of USD 1,605 million, down from USD 4,084 million in FY 2024. The adjusted EBITDA for FY 2025 was USD 122 million, compared to USD 826 million the previous year. Continuing operations revenue improved by 11% year-over-year, reaching USD 1,086 million, with an adjusted EBITDA of USD 46 million.
Merger Plans and Legal Proceedings
OCI announced plans to merge with Orascom Construction to create a scalable infrastructure platform in Abu Dhabi. However, the Dutch association for retail shareholders and others have petitioned for an inquiry, leading to a court ruling that temporarily prohibits a shareholder vote on the merger. Two independent non-executive directors have been appointed to ensure compliance with statutory duties, particularly towards minority shareholders.
