OCI Global Q1 2025 Trading Update
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OCI Global released its Q1 2025 trading update, highlighting several key developments. The company distributed USD 1.0 billion to shareholders in May, bringing total distributions to USD 6.4 billion over four years. OCI secured a binding agreement with bondholders regarding 2033 bonds treatment and resolved a dispute with Proman about the Natgasoline joint venture sale. The company's European Nitrogen segment faced challenges from higher gas prices and planned turnarounds, though remaining profitable. Continuing Operations showed losses but improved from the previous quarter. The Beaumont New Ammonia plant construction is progressing well, with total cash spend at USD 1,167 million. The planned sale of OCI Methanol to Methanex received EU approval and is expected to close in Q2 2025. The company maintained a strong net cash position of USD 1,033 million as of March 31, 2025.
OCI Global ha pubblicato l'aggiornamento commerciale del primo trimestre 2025, evidenziando diversi sviluppi chiave. A maggio, la società ha distribuito 1,0 miliardi di USD agli azionisti, portando il totale delle distribuzioni a 6,4 miliardi di USD negli ultimi quattro anni. OCI ha raggiunto un accordo vincolante con i detentori di obbligazioni riguardo al trattamento dei bond 2033 e ha risolto una controversia con Proman relativa alla vendita della joint venture Natgasoline. Il segmento europeo dell'azoto ha affrontato difficoltà a causa dell'aumento dei prezzi del gas e delle manutenzioni programmate, pur rimanendo redditizio. Le operazioni in corso hanno registrato perdite, ma con un miglioramento rispetto al trimestre precedente. La costruzione dell'impianto Beaumont New Ammonia procede bene, con una spesa totale in contanti di 1.167 milioni di USD. La vendita pianificata di OCI Methanol a Methanex ha ricevuto l'approvazione dell'UE ed è prevista la chiusura nel secondo trimestre 2025. Al 31 marzo 2025, la società mantiene una solida posizione di cassa netta pari a 1.033 milioni di USD.
OCI Global publicó su actualización comercial del primer trimestre de 2025, destacando varios desarrollos clave. En mayo, la compañía distribuyó 1.000 millones de USD a los accionistas, sumando un total de distribuciones de 6.400 millones de USD en cuatro años. OCI aseguró un acuerdo vinculante con los tenedores de bonos sobre el tratamiento de los bonos 2033 y resolvió una disputa con Proman sobre la venta de la empresa conjunta Natgasoline. El segmento europeo de nitrógeno enfrentó desafíos debido a los mayores precios del gas y paradas planificadas, aunque se mantuvo rentable. Las operaciones continuas mostraron pérdidas, pero mejoraron respecto al trimestre anterior. La construcción de la planta Beaumont New Ammonia avanza bien, con un gasto total en efectivo de 1.167 millones de USD. La venta planeada de OCI Methanol a Methanex recibió la aprobación de la UE y se espera que se cierre en el segundo trimestre de 2025. La compañía mantuvo una sólida posición neta de efectivo de 1.033 millones de USD al 31 de marzo de 2025.
OCI Global은 2025년 1분기 실적 업데이트를 발표하며 여러 주요 발전 사항을 강조했습니다. 회사는 5월에 주주들에게 10억 달러를 배당하여 지난 4년간 총 64억 달러를 배분했습니다. OCI는 2033년 채권 처리에 대해 채권자들과 구속력 있는 합의를 체결했으며, Proman과 Natgasoline 합작 투자 매각 관련 분쟁도 해결했습니다. 유럽 질소 부문은 가스 가격 상승과 계획된 정비로 어려움을 겪었지만 여전히 수익성을 유지했습니다. 지속 영업 부문은 손실을 기록했으나 전 분기 대비 개선되었습니다. Beaumont New Ammonia 공장 건설은 순조롭게 진행 중이며, 총 현금 지출은 11억 6,700만 달러입니다. OCI Methanol의 Methanex 매각 계획은 EU 승인을 받았으며 2025년 2분기 종료가 예상됩니다. 2025년 3월 31일 기준 회사는 10억 3,300만 달러의 강력한 순현금 상태를 유지하고 있습니다.
OCI Global a publié sa mise à jour commerciale du premier trimestre 2025, mettant en avant plusieurs développements clés. En mai, la société a distribué 1,0 milliard USD aux actionnaires, portant le total des distributions à 6,4 milliards USD sur quatre ans. OCI a conclu un accord contraignant avec les détenteurs d'obligations concernant le traitement des obligations 2033 et a résolu un litige avec Proman au sujet de la vente de la coentreprise Natgasoline. Le segment européen de l'azote a rencontré des difficultés dues à la hausse des prix du gaz et aux arrêts planifiés, tout en restant rentable. Les opérations poursuivies ont affiché des pertes, mais en amélioration par rapport au trimestre précédent. La construction de l'usine Beaumont New Ammonia progresse bien, avec une dépense totale en liquidités de 1 167 millions USD. La vente prévue d'OCI Methanol à Methanex a reçu l'approbation de l'UE et devrait être finalisée au deuxième trimestre 2025. Au 31 mars 2025, la société maintient une solide position de trésorerie nette de 1 033 millions USD.
OCI Global veröffentlichte sein Handelsupdate für das erste Quartal 2025 und hob mehrere wichtige Entwicklungen hervor. Das Unternehmen zahlte im Mai 1,0 Milliarden USD an Aktionäre aus, womit sich die Gesamtausschüttungen über vier Jahre auf 6,4 Milliarden USD belaufen. OCI sicherte sich eine verbindliche Vereinbarung mit den Anleihegläubigern bezüglich der Behandlung der 2033-Anleihen und löste einen Streit mit Proman über den Verkauf des Natgasoline Joint Ventures. Der europäische Stickstoffbereich stand aufgrund höherer Gaspreise und geplanter Wartungsarbeiten vor Herausforderungen, blieb jedoch profitabel. Die fortgeführten Geschäftsbereiche zeigten Verluste, verbesserten sich jedoch gegenüber dem Vorquartal. Der Bau der Beaumont New Ammonia-Anlage schreitet gut voran, mit Gesamtausgaben in bar von 1.167 Millionen USD. Der geplante Verkauf von OCI Methanol an Methanex erhielt die EU-Zulassung und wird voraussichtlich im zweiten Quartal 2025 abgeschlossen. Das Unternehmen behielt zum 31. März 2025 eine starke Nettoliquiditätsposition von 1.033 Millionen USD bei.
Positive
- Distributed USD 1.0 billion to shareholders, totaling USD 6.4 billion over four years
- Secured favorable resolution of Proman dispute regarding Natgasoline joint venture
- European Commission approved OCI Methanol sale to Methanex
- Strong net cash position of USD 1,033 million
- Natgasoline achieved 95% AUR in Q1 2025
- On track to beat corporate cost target of USD 30-40 million
Negative
- Continuing Operations Adjusted EBITDA remained in loss territory for Q1 2025
- European Nitrogen segment profitability challenged by higher gas prices
- Net cash position decreased from USD 1,371 million in December 2024 to USD 1,033 million in March 2025
- Methanol sales volume dropped 34% year-over-year due to planned turnaround
"OCI entered 2025 with positive momentum, following a year marked by significant portfolio changes. In the first quarter, we delivered on key transaction milestones, including the resolution of the previously disclosed dispute with our Natgasoline joint venture partner Proman regarding the sale of OCI Methanol to Methanex, as well as substantial progress on the construction of the Beaumont New Ammonia plant, scheduled for completion later this year. Operationally, our European portfolio performed well during the period, despite planned shutdowns at certain assets.
In line with our approach to disciplined capital returns, OCI distributed
As part of our ongoing transformation, OCI also secured a binding support agreement with a large group of bondholders regarding the treatment of the 2033 bonds, pending completion of the Methanol sale. This will facilitate an orderly pay down of OCI's capital structure following the closing of the transaction.
Looking ahead, our main priorities are to complete the construction and handover of Beaumont New Ammonia, and to close the Methanol transaction as planned in Q2 2025. With a simplified corporate structure, a stable balance sheet, and a competitive European nitrogen platform, OCI is well-placed to execute on its current objectives and to support value creation."
Key Financial Highlights
- Continuing Operations Adjusted EBITDA for Q1 2025 continued to show a loss, but performance improved over the prior quarter as corporate cost reduction measures gained traction.
- The European Nitrogen segment's profitability was challenged during the quarter by higher gas prices year-on-year and a planned turnaround that negatively impacted EBITDA margin. Despite these headwinds, the segment continues to be profitable and is well-positioned to benefit from the anticipated decrease in European gas prices.
- OCI has accelerated its efforts to streamline the corporate cost structure, achieving meaningful progress in aligning the organization to its post-divestment footprint. The Company remains on track to beat its previously guided corporate cost target of
USD 30 - 40 million on a run rate basis by the end of 2025. - Within Discontinued Operations, OCI Methanol delivered a resilient financial performance in Q1 2025 notwithstanding a planned turnaround at the OCI Beaumont plant. Results were supported by elevated methanol prices and reduced natural gas hedge losses compared to the same period last year, as well as a record performance at Natgasoline, which successfully resumed operations at the end of last year.
- Net cash from Continuing Operations stood at
USD 1,033 million as of 31 March 2025 compared to a net cash position ofUSD 1,371 million as of 31 December 2024.
Key Strategic and Business Highlights
- The announced sale on 8 September 2024 of OCI's global methanol business ("OCI Methanol") to Methanex Corporation ("Methanex") has been approved by both companies' boards and is expected to close in Q2 2025, subject to regulatory approvals and customary conditions. On 14 May 2025, the European Commission (EC) announced it had approved the acquisition under the EU Merger Regulation, concluding that the transaction does not raise competition concerns. In March 2025, OCI secured a favorable and final resolution of the previously disclosed dispute with Proman regarding shareholder rights in its Natgasoline joint venture. Following a
Delaware Court of Chancery ruling in OCI's favor and the subsequent withdrawal of Proman's appeal, OCI's50% interest in Natgasoline remains part of the transaction perimeter. - Construction of the Beaumont New Ammonia site is well advanced and nearing completion, with engineering and procurement mostly complete, and the team currently preparing for commissioning and startup later this year. The project remains on track in terms of total cash spend, which stood at
USD 1,167 million as of 31 March 2025. - OCI made a further extraordinary distribution of approximately
USD 1 billion as a repayment of capital or at the election of the shareholder, from the profit reserve in May 2025, bringing total cumulative distributions toUSD 6.4 billion over the last four years. - In April 2025, OCI reached a Support Agreement with a bondholder group representing over
60% of itsUSD 600 million 6.700% Notes due 2033, relating to the treatment of the bonds following contemplated completion of the announced sale of OCI Methanol. Under the Support Agreement, OCI will launch a tender offer for the bonds within five business days of the successful closing of the transaction at110.75% of par plus accrued and unpaid interest, with the bondholder group agreeing to support and tender into such offer. The group also agreed to support proposed amendments to the bonds, including a redemption right on or after closing at the same price and a waiver of any alleged defaults or events of default that may be outstanding under the documentation governing the bonds. - With regards OCI's strategic review, the Company remains actively engaged in the evaluation of strategic alternatives for its continuing businesses. Any future decisions will be made in the best interests of all shareholders.
Continuing and Discontinued Operational Highlights
Continuing Operations, as presented in this trading update, reflect the performance of the European Nitrogen segment. Further to the announcement of the expected divestiture of OCI's equity holdings in OCI Methanol, this segment is classified as Discontinued Operations.
European Nitrogen
- Own-produced sales were 484 thousand tonnes during the first quarter of 2025, materially unchanged year-on-year and
16% higher quarter-on-quarter. Despite a planned turnaround of the ammonia line as well as the UAN and CAN plants during the quarter, overall production levels were stable year-on-year, supported by the production of new products including AdBlue and CAN+S. Benchmark prices for nitrates were higher in Q1 2025 compared to Q1 2024 and showed a sequential improvement quarter-on-quarter. - In February 2025, OCI Nitrogen, Dossche Mills and AGRAVIS announced major progress in their partnership to scale sustainable wheat production across
Europe . Using low-carbon fertilizers and farmer incentives, the initiative enabled a tenfold increase in sustainable wheat harvested in 2024, delivering 14,000 tonnes - enough for twenty-five million lower-carbon loaves of bread. The partners aim to triple production in the coming years while maintaining quality and supporting farming practices. - In March 2025, OCI Global partnered with RWZ to supply low-carbon fertilizers to RWZ and BASF's "KlimaPartner Landwirtschaft" carbon farming initiative. The collaboration, utilising OCI's low-carbon nitrogen solutions, supports climate-smart practices across 8,200 hectares of winter wheat and aims to cut CO₂-equivalent emissions per tonne of yield by
30% , helping future-proof arable farming with ecological and economic benefits. - In April 2025, OCI, alongside Trammo, James Fisher Fendercare and other partners, successfully completed the Port of
Rotterdam's first ammonia ship-to-ship bunkering pilot, transferring eight hundred cubic meters of liquid ammonia. The safe execution of this milestone highlights the strategic value of OCI's ammonia import terminal and distribution infrastructure in enabling the adoption of clean ammonia as a marine fuel and supporting the decarbonisation of global shipping.
OCI Methanol
- Own-produced methanol sales from the methanol business were 233 thousand tonnes in the first quarter of 2025,
34% lower than Q1 2024 and7% lower than Q4 2024. Volumes were impacted by a planned turnaround at OCI Beaumont, while Natgasoline ran at a95% AUR in Q1 2025 following its successful restart at the end of 2024. - Benchmark prices for methanol were materially improved in the quarter compared to the same period last year. Spot US Gulf Coast methanol prices averaged
USD 370 /t in Q1 2025,17% higher than theUSD 317 /t averaged in Q1 2024.
Notes
This report contains unaudited first quarter highlights of OCI Global ('OCI,' 'the Group' or 'the Company'), a public limited liability company incorporated under Dutch law, with its head office located at Honthorststraat 19, 1071 DC
OCI Global is registered in the Dutch commercial register under No. 56821166 dated 2 January 2013. The Group is primarily involved in the production of nitrogen-based fertilizers and industrial chemicals.
Auditor
The reported data in this report have not been audited by an external auditor.
Market Abuse Regulation
This press release contains inside information as meant in clause 7(1) of the Market Abuse Regulation.
About OCI Global
Learn more about OCI at www.oci-global.com. You can also follow OCI on LinkedIn.
OCI stock symbols: OCI / OCI.NA / OCI.AS
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SOURCE OCI Global
FAQ
What is the status of OCI Global's methanol business sale to Methanex in 2025?
The sale has been approved by both companies' boards and the European Commission, and is expected to close in Q2 2025, subject to remaining regulatory approvals and customary conditions.
How much did OCINF distribute to shareholders in May 2025?
OCI Global distributed USD 1.0 billion to shareholders in May 2025, bringing total distributions to USD 6.4 billion over the past four years.
What is the current status of OCI's Beaumont New Ammonia plant construction?
The construction is well advanced and nearing completion, with engineering and procurement mostly complete. Total cash spend stood at USD 1,167 million as of March 31, 2025, and startup is scheduled for later in 2025.
How did OCI Global's European Nitrogen segment perform in Q1 2025?
The segment faced challenges from higher gas prices and planned turnarounds that impacted EBITDA margin, though it remained profitable. Own-produced sales were 484 thousand tonnes, unchanged year-on-year but 16% higher quarter-on-quarter.
What agreement did OCI reach with bondholders regarding the 2033 bonds?
OCI secured a Support Agreement with bondholders representing over 60% of its USD 600 million 6.700% Notes due 2033, agreeing to launch a tender offer at 110.75% of par plus interest following the methanol business sale closure.
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