OCI Global has reported its H1 2025 financial results, highlighting the successful completion of its methanol business sale while facing operational challenges in its continuing European nitrogen operations. The results reflect a period of significant corporate transformation as the company executes its strategic review and capital allocation strategy.
Major Divestiture Completed
OCI successfully closed the sale of its global methanol business to Methanex Corporation on 27 June 2025, achieving total gross proceeds of USD 11.6 billion from its strategic review process. The transaction was valued at USD 1.6 billion, comprising USD 1.3 billion in cash and 9.9 million common shares of Methanex valued at USD 346 million, representing a 12.9 percent ownership stake in the enlarged Methanex platform.
Hassan Badrawi, CEO of OCI Global, emphasised the transaction’s strategic value: “With this closing, total gross proceeds resulting from the strategic review reached USD 11.6 billion. Consistent with the company’s stated commitments, OCI has distributed USD 1.7 billion to shareholders year to date through repayments of capital and normal cash dividends, bringing total distributions to shareholders to approximately USD 7 billion over the last four years.”
Substantial Shareholder Returns and Debt Elimination
The company has maintained its commitment to returning capital to shareholders, distributing USD 1 billion through an extraordinary distribution in May 2025, followed by a further USD 700 million distribution (USD 3.31 per share) in September 2025. Cumulatively, OCI has distributed approximately USD 7 billion since resuming dividend payments in 2022.
OCI has also fully retired its 2033 bonds, completing the repayment of all outstanding debt. The company called 100 percent of the bond principal at 110.75 percent of face value for a total cash amount of USD 680.2 million, including accrued interest, with settlement completed in August 2025.
European Operations Face Headwinds
The company’s continuing operations, comprising European Nitrogen and Corporate Entities segments, reported H1 2025 revenue of USD 567 million, an 11% increase year-over-year. However, adjusted EBITDA from continuing operations declined to USD 1 million compared to USD 7 million in H1 2024.
European Nitrogen, OCI’s sole operating asset within continuing operations, reported H1 2025 adjusted EBITDA of USD 21 million, down from USD 48 million in H1 2024. Despite higher product prices and increased revenue, operational profitability was challenged by a 38 percent year-over-year increase in European gas prices and lower sales volumes due to plant outages during the period.
Financial Performance Metrics
OCI reported total operations revenue of USD 1,061 million for H1 2025. Net profit attributable to shareholders from total operations reached USD 343 million, primarily driven by a USD 688 million gain from the methanol business sale. However, the company recorded a net loss of USD 331 million from continuing operations compared to USD 167 million in H1 2024, largely due to non-cash foreign exchange losses and Beaumont Clean Ammonia project expenditures.
Operating free cash outflow from continuing operations was USD 83 million in H1 2025, compared to USD 70 million in the previous year. The company maintained net cash of USD 1,030 million as of 30 June 2025.
Beaumont Project Nears Completion
Construction of the Beaumont New Ammonia project is largely complete, with the facility now in pre-commissioning and commissioning phases. Total project spend in H1 2025 amounted to USD 336 million, bringing cumulative investment to USD 1,290 million as of 30 June 2025. OCI expects total investment costs to reach approximately USD 1.65 billion by project completion, with first ammonia production anticipated later this year and handover to Woodside expected during Q1 2026.
Strategic Combination with Orascom Construction
OCI and Orascom Construction PLC announced on 22 September 2025 their pursuit of a potential merger to establish a scalable infrastructure and investment platform anchored in Abu Dhabi with global reach. The contemplated combination would unite Orascom’s engineering, procurement and construction capabilities with OCI’s institutional investment platform and capital allocation expertise.
Badrawi outlined the strategic vision: “The contemplated fusion of capital and industry expertise will allow us to strengthen and grow a diversified platform from which we can create sustainable value for our shareholders.”
For more information and the full report visit www.oci-global.com
