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OCI reports 4Q19 results

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World Fertilizer,

OCI N.V. has reported its financial results for 4Q19.


  • Revenues were US$848 million and adjusted EBITDA US$237 million in 4Q19 versus US$942 million and US$269 million in 4Q18 respectively, as an increase in volumes sold was more than offset by lower selling prices.
  • OCI-produced volumes sold increased 19% to 2.9 million t in 4Q19 versus 4Q18.
  • Adjusted net loss was US$43 million in 4Q19 compared to adjusted net income of US$17 million in 4Q18.
  • Net debt was US$4.06 billion as of 31 December 2019, unchanged from 30 September 2019, with an improved EBITDA from 3Q19 to 4Q19 offset primarily by a temporary increase in receivables and inventories of c.US$115 million.
  • As part of the strategic review of the methanol group, the company has initiated a process with several interested parties that may result in a partial divestment or other structures.
  • Following an extensive planned turnaround schedule in 2019, the company expects a healthy increase in production and sales volumes in 2020, in addition to the full consolidation of Fertiglobe.



  • After a challenging 2019, global nitrogen markets are showing improving fundamentals supported by a combination of limited new capacity additions, expected increased acreage in the US this year, favourable farm economics for nitrogen and strong demand from key importing countries.
  • In the shorter term, the company are well-positioned for the start of the 2020 spring season with a healthy order book and urea production almost sold out for the first quarter.
  • As a result of an advantageous location in the US Midwest, the company expect to benefit from an expected improvement in demand in North America, driven by an anticipated return to normal planting conditions and an increase in planted acreage.
  • The European nitrates market has witnessed a better price environment than the urea ammonium nitrate (UAN) market in the US in recent months and the outlook for this business remains positive.
  • The company expect to continue to benefit from a positive outlook for diesel exhaust fluid (DEF) in the US, following a doubling of product volumes in 2019.
  • In January, the joint venture (JV) N-7 finalised an agreement with Dyno Nobel to market their DEF, urea liquor and automotive grade urea in North America. This further strengthens N-7’s position as a major supplier, whilst providing additional geographic reach from a total of four sites across the US.


  • Methanol prices have risen steadily as a result of tighter global markets, and the current spot price in the US is up more than US$100/t since reaching a trough last summer. USGC spot prices are also up almost 30% year-to-date.
  • While prices remain at levels below mid-cycle, the increases bode well for a better 2020 compared to 2019.
  • Against this price backdrop, we expect to benefit from the ramp-up of the company's new methanol capacity, as well as the normalisation of production and improved onstream efficiency in 2020 compared to the low asset utilisation rates in 2019 as a result of unplanned downtime.

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