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Introduction & Market Context
OCI NV (AMS:OCI) presented its H1 2025 results on September 25, highlighting the company’s continued strategic transformation following a series of major divestments. The company’s stock closed at €3.88 on October 3, 2025, significantly below its 52-week high of €27.33, reflecting investor uncertainty about the company’s future direction after its substantial portfolio reshaping.
The company has completed several major transactions over the past year, transforming from a global nitrogen and methanol producer to a more focused entity with primarily European nitrogen assets, while maintaining a strong cash position.
Strategic Initiatives
OCI has successfully executed a series of strategic divestments that have fundamentally transformed the company’s structure and focus. These transactions have generated substantial proceeds that have been used for debt reduction and shareholder returns.
As shown in the following transaction summary:
The most recent transaction, the sale of OCI Methanol to Methanex Corporation for $2.05 billion, closed in Q2 2025, resulting in OCI becoming a 12.9% shareholder in Methanex. This follows earlier divestments of Fertiglobe to ADNOC ($3.62 billion), Iowa Fertilizer Company to KAES ($3.60 billion), and OCI Clean Ammonia to Woodside Energy ($2.35 billion).
Following these transactions, OCI has redeemed all outstanding 2033 Notes, paying bondholders $680.2 million and achieving zero gross debt. The company is now conducting a strategic review of its remaining European assets, with updates expected by year-end.
The Beaumont New Ammonia project represents one of the company’s remaining major initiatives, with handover to Woodside expected in Q1 2026:
The project is 97% complete with $1.39 billion spent of the approximately $1.65 billion total budget. Engineering and procurement are 100% complete, and the project is currently in pre-commissioning and commissioning stages.
Quarterly Performance Highlights
OCI’s H1 2025 financial results showed mixed performance, with revenue from continuing operations increasing to $567 million from $509 million in H1 2024, representing an 11.4% year-over-year growth.
The following financial summary highlights key metrics:
Despite the revenue growth, adjusted EBITDA for European Nitrogen decreased to $21 million from $48 million in H1 2024, while the "Other" segment improved to -$20 million from -$41 million. This decline in European Nitrogen EBITDA occurred despite higher product prices, suggesting margin pressure from increased input costs, particularly natural gas, which saw Dutch TTF prices rise 38% year-over-year to $13.0/mmBtu.
Sales volumes for own-produced products included 0.13 million tonnes of Ammonia & Fertilizer Products and 0.96 million tonnes of Other Premium Nitrogen Products, compared to 0.07 million tonnes and 0.98 million tonnes respectively in H1 2024.
The company’s comprehensive financial results show significant changes due to the divestments:
Total product volumes declined dramatically to 1,888.9 thousand metric tonnes in H1 2025 from 5,829.4 thousand metric tonnes in H1 2024, reflecting the impact of the divestments on the company’s operational scale.
Detailed Financial Analysis
OCI’s cash flow and net cash position reflect both the proceeds from divestments and significant cash distributions to shareholders:
Starting with a net cash position of $1,371 million at the end of 2024, the company received $1,295 million from the disposal of MetCo, but distributed $1,000 million to shareholders in May 2025. Additional outflows included $336 million for the Beaumont New Ammonia project, $73 million in debt modification costs, $141 million in cash contribution to OCI Methanol, and $87 million in other cash flows. This resulted in a net cash position of $1,030 million as of June 30, 2025.
The company has maintained a strong focus on shareholder returns, with significant distributions made over the past several years:
Since 2013, OCI has returned $7.0 billion to shareholders, with approximately $5 billion funded by proceeds from the strategic review. Recent distributions include $4.74 per share in May 2025 and $3.31 per share in September 2025.
Forward-Looking Statements
The most significant development for OCI’s future is the contemplated strategic combination with Orascom Construction:
This potential transaction would create a Global Infrastructure and Investment Platform, combining OC’s EPC (Engineering, Procurement, and Construction) capabilities with OCI’s investment expertise and capital access. The structure being explored would have Orascom Construction as the acquiring entity, with OCI shareholders receiving new Orascom Construction shares at a ratio to be determined. OCI would subsequently be liquidated and delisted from Euronext Amsterdam.
The company also maintains a strong focus on operational safety, with performance significantly better than industry averages:
OCI reported a Total Recordable Injury Rate (TRIR) of 0.31 incidents per 200,000 working hours at the end of June 2025, compared to an industry average of 1.24, demonstrating the company’s commitment to workplace safety even during its significant organizational transformation.
As OCI continues its strategic evolution, investors will be closely watching the outcome of the European assets review and the potential combination with Orascom Construction, which together will define the company’s future direction after its series of major divestments.
Full presentation:
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