Moody's Investors Service has assigned a Baa3 long-term issuer rating to Abu Dhabi-listed Fertiglobe with a “stable outlook”, while Fitch Ratings has allocated the world’s largest seaborne exporter of urea and ammonia a first-time long-term Issuer Default Rating (IDR) of BBB with a stable outlook.
The investment grade Baa3 rating reflects the “company’s high profitability and cash generation capability” against its exposure to a cyclical end-market and its significant share of capacity in Egypt and Algeria that exposed the company to various geopolitical risks, Moody's said.
A cyclical industry is sensitive to the business cycle, with revenue higher in periods of economic prosperity and expansion, and lower during economic contraction.
Fitch Ratings’ investment grade rating reflects Fertiglobe's “strong cash flow generation from young assets that are strategically located to serve global ammonia and urea markets and its competitive gas cost”, the American credit rating agency said in a statement on Monday.
Fertiglobe, a joint venture between Abu Dhabi National Oil Company and Netherlands-listed OCI, raised about $795 million from its initial public offering on the Abu Dhabi Securities Exchange last year, amid strong demand from international, regional and local investors.
OCI is the majority shareholder with a 50 per cent controlling stake, while Adnoc owns a 36 per cent share. The company had a market capitalisation of Dh40.5 billion ($11bn) as of June 27.
Its output capacity comprises 6.7 million tonnes of urea and ammonia, produced at four units in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilisers in the Middle East and North Africa.
Despite the importance of Fertiglobe's plants to the economies of Egypt and Algeria, Moody's said operating in these countries involves “a high level of economic, political and operational risk”.
The company's track record of operating in these environments indicated “some ability to effectively manage the exposure”, it added.
Moody's also expects that Fertiglobe will swiftly adapt its capital allocation if required.
The company benefited from “competitively priced fixed price gas contracts which in some cases contain cost escalation clauses if ammonia / urea prices increase above certain thresholds”, it said.
“These gas price contracts position the company in the first quartile of the global urea and ammonia cost curves … furthermore, the company benefits from strategically located production capacity east and west of the Suez Canal.”
In the first quarter of 2022, Fertiglobe's net profit surged more than three-fold to about $467m, driven by increased selling prices across the company's product line. Revenue more than doubled to $1.2bn.
It employs more than 2,600 people and the company is incorporated in The Abu Dhabi Global Market.
Fertiglobe's liquidity profile is excellent, Moody’s said. As of March, the company had about $1.26bn of cash on its balance sheet and access to a $300m undrawn revolving credit facility.
Its earnings before interest, taxes, depreciation, and amortisation (EBITDA), and cash generated from Abu Dhabi alone, could service the company’s debt and support credit metrics in line with an investment grade rating, Moody's said.
Fitch Ratings expects Fertiglobe to generate record EBITDA of more than $2bn this year, up from $1.5bn last year, supported by all-time high ammonia and urea prices.
“This is explained by high global crop and gas prices, exacerbated by the war in Ukraine due to the important role of Russia, Ukraine and the Black Sea, notably for the global trade of ammonia,” it said.
“As supply gradually improves and gas prices ease, we expect ammonia and urea prices to return to mid-cycle levels by 2024, translating into an EBITDA for Fertiglobe of about $0.8bn.”
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
TCL INFO
Teams:
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17
Killing of Qassem Suleimani
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more from Janine di Giovanni
FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
U19 World Cup in South Africa
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
UAE squad
Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
MATCH INFO
Barcelona 2
Suarez (10'), Messi (52')
Real Madrid 2
Ronaldo (14'), Bale (72')
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
KILLING OF QASSEM SULEIMANI
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
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