Fertiglobe sees record levels despite challenges

Net debt stood at around AED 2.3 billion ($621 million).

Fertiglobe said it continued to achieve record-high operating rates in Egypt and Algeria during Q2 2026, supported by its “Manufacturing Enhancement Plan”. This contributed to platform-wide urea production utilization rates of 92% in H1 2026, despite operational challenges in the UAE.
 
Net debt stood at around AED 2.3 billion ($621 million), down from AED 3.7 billion ($1 billion) as of Dec. 31, 2025, implying a consolidated net debt-to-adjusted EBITDA ratio of 0.5x over the last 12 months.
 
Fertiglobe noted that urea prices returned to pre-conflict levels by the end of Q2, supported by the usual seasonal decline in purchases, the gradual reopening of the Strait of Hormuz, resumption of Chinese exports, and lower urea prices that significantly improved affordability compared to peak war-time levels, further aided by higher grain prices, which spurred deferred demand in Europe.
 
Over the long term, Fertiglobe anticipates global urea demand growth (excluding China) of approximately 11.4 million tons will outpace projected production increases of about 9.1 million tons by 2030, supporting market competitiveness.
 
Ammonia prices remain strongly supported by ongoing supply shortages from leading export hubs east of the Suez Canal and rising gas prices at the Title Transfer Facility (TTF) to more than $20 per MMBtu, which have pushed production costs well above market prices.
 
The company expects gradual adjustment in ammonia markets, with Middle Eastern plants and exporters resuming operations and as new supply from the US Gulf Coast continues to increase.
 
Regarding future projects, Fertiglobe stated that the "Harvest" project to produce one million tons per year of low-carbon ammonia in the UAE aims to reduce carbon intensity by up to 50% versus conventional ammonia. Construction began in Q4 2024, with operations expected to start in 2027.