OCI returns $7 billion to shareholders after $11.9 billion overhaul

OCI Global, a leading producer and distributor of nitrogen and methanol products, has generated $11.9 billion in proceeds from a sweeping strategic overhaul, enabling the company to return approximately $7 billion to shareholders over the past four years.

The transformation underscores OCI’s shift toward a leaner, value-driven portfolio amid heightened volatility in global energy and fertilizer markets.

Strategic reset unlocks shareholder value
The proceeds stem from a series of divestments, including the sale of its global methanol business to Methanex Corporation and ongoing plans to offload additional nitrogen and ammonia assets.

The Netherlands-based fertilizer and chemicals group led by CEO Hassan Badrawi, also reached an agreement to sell its ammonia distribution and terminal business to Agrofert, with completion expected in the first half of 2026.

As part of its restructuring, the company is pursuing a potential combination with Orascom Construction to create a scalable infrastructure and investment platform anchored in Abu Dhabi. However, the transaction faces legal scrutiny after shareholders petitioned the Enterprise Chamber of the Amsterdam Court of Appeals, which has temporarily halted a vote pending further review.

Financial performance reflects transition phase
OCI reported full-year 2025 revenue of $1.61 billion, down sharply from $4.08 billion in 2024, reflecting the deconsolidation of divested businesses. Adjusted EBITDA also declined to $122 million from $826 million in the prior year.

However, continuing operations—focused on its European nitrogen segment—showed resilience, with revenue rising 11% to $1.09 billion and EBITDA rebounding to $46 million from a loss a year earlier.

Energy volatility clouds outlook
With Nassef Sawiris holding a 38.8% stake, OCI Global has grown into a world-class industrial heavyweight, operating across four continents with an annual production capacity of 17.2 million metric tonnes.

Geopolitical tensions in the Middle East have driven a sharp 60% spike in European natural gas prices, significantly increasing production costs for nitrogen producers. While fertilizer prices have risen, OCI noted a lag in passing higher input costs to customers, limiting near-term visibility on margins.

Despite these headwinds, OCI continues to streamline operations, reduce corporate costs, and reposition its portfolio. With billions already returned to investors and further asset sales underway, the group is doubling down on disciplined capital allocation and long-term value creation.