Semi-annual condensed consolidated financial statements
For the six month period ended 30 June 2021 (unaudited)
OCI N.V. SEMI-ANNUAL CONDENSED CONSOLIDATED FINANCIAL STATEMENTS / JUNE 2021
SEMI-ANNUAL MANAGEMENT REPORT
Condensed consolidated income statement
$ million | 30 June 2021 | 30 June 2020 |
Revenue | 2,582.5 | 1,686.5 |
Gross profit | 745.0 | 204.0 |
Operating profit | 622.9 | 107.9 |
Adjusted EBITDA1 | 987.2 | 412.5 |
Adjusted EBITDA margin1 | 38.2% | 24.5% |
Reported EBITDA | 933.5 | 397.5 |
Reported EBITDA margin | 36.1% | 23.6% |
Net finance cost | (134.1) | (110.8) |
Net profit | 447.9 | (33.7) |
Reported net profit / (loss) attributable to owners of the Company | 244.9 | (83.8) |
Adjusted net profit / (loss) attributable to owners of the Company1 | 215.5 | (101.9) |
Outlook
The outlook for OCI and our end markets remain robust for the remainder of this year and beyond, supported by strong underlying demand for nitrogen fertilizers driven by healthy farm economics, and a continued recovery in our industrial markets for ammonia, methanol, melamine and DEF. We continue to see strong demand for a wide range of downstream products used across various end markets including construction, automotive and textiles. Furthermore, the recovery in transportation applications increasingly bolsters demand for our products, keeping market conditions tight. Based on the current market outlook for selling prices for 2021, we expect a drop in net leverage (net debt / adjusted EBITDA) to below our target of 2.0x through the cycle by year-end 2021.
Fertiglobe IPO
As mentioned in the press release dated 12 April 2021, OCI N.V. and Abu Dhabi National Oil Company (ADNOC) are considering an initial public offering (IPO) of their nitrogen-fertilizer partnership Fertiglobe.
Risks and uncertainties
A description of OCI's risk management system and an overview of potentially important risks for OCI are provided in the Annual Report 2020. OCI has reviewed the developments in the first six months of 2021 and assessed the risks for the year. Based on these assessments OCI has concluded that the most important risks and responses as reported in the Annual Report 2020 are still applicable.
Related party transactions
During the six-month period ended 30 June 2021, no related party transactions outside the normal course of business occurred. Reference is made to the Annual Report 2020 for an overview of related party transactions. OCI did not enter in any new related party transactions during the six-month period ended 30 June 2021.
$ million | Performance drivers six-month period ended 30 June 2021 |
Revenue | • Sales volumes: increased by 5% reaching a record 7.6 million metric tons, primarily |
due to a 4% increase in own product sold as well as an 8% increase in traded | |
volumes sold. | |
• Selling prices: improved substantially year-on-year for all our products. Together | |
with the increased sales volumes this resulted in an increase of 53% in revenues | |
compared to the six-month period ended 30 June 2020. | |
Adjusted | • Adjusted EBITDA increased by 139% or USD 574.7 million to USD 987.2 million for |
EBITDA1 | the six-month period ended 30 June 2021, primarily driven by the revenue growth. |
• EBITDA margin improved resulting from higher utilization rates of our plants and | |
favorable selling prices, partly offset by unfavorable gas prices in mainly EU and US. |
Operating profit Operating profit increased by 477.3% or USD 515.0 million during the six-month period ended 30 June 2021 as compared to the same period in 2020, primarily as a result of:
- Gross profit increased by USD 541.0 million due to a USD 896.0 million increase in revenue, partially offset by a USD 355.0 million increase in cost of sales.
- Selling, general and administrative expenses increased by USD 13.5 million to USD 122.7 million.
Financing cost • Finance income decreased by USD 25.5 million to USD 6.4 million, mainly driven by a decrease in foreign exchange gains.
- Finance cost decreased by USD 2.2 million to USD 140.5 million. This was primarily due to a USD 8.3 million decrease in foreign exchange loss, partially offset by a USD 6.1 million increase in interest expense on financial liabilities.
- The foreign exchange gains and losses mainly relate to external financing and to the revaluation of intercompany balances in foreign currencies.
- Like-for-likeinterest on loans and borrowings was reduced by USD 28 million in the six-month period ended 30 June 2021.
Net profit | • Net profit of USD 447.9 million in the six-month period ended 30 June 2021, |
compared to a loss of USD 33.7 million in the same period in 2020, primarily driven | |
by a higher operating profit. | |
• Adjusted net profit / (loss) attributable to the owners of the Company was a profit of | |
USD 215.5 million in the six-month period ended 30 June 2021, compared to a loss | |
of USD 101.9 million in the same period in 2020. |
1 OCI N.V. uses Alternative Performance Measures ('APM') to provide a better understanding of the underlying developments of the performance of the business. The APMs are not defined in IFRS and should be used as supplementary information in conjunction with the most directly comparable IFRS measures. The definition of the APM and a detailed reconciliation between the APM and the most directly comparable IFRS measure can be found on pages 16 - 17 of the report.
OCI N.V. Semi-annual report 2021 2
OCI N.V. SEMI-ANNUAL CONDENSED CONSOLIDATED FINANCIAL STATEMENTS / JUNE 2021
SEMI-ANNUAL MANAGEMENT REPORT
Condensed consolidated statement of cash flows
$ million | 30 June 2021 | 30 June 2020 |
Cash and cash equivalents at 1 January | 686.3 | 600.5 |
Cash flows from operating activities | 830.7 | 238.1 |
Cash flows used in investing activities | (75.8) | (161.2) |
Cash flows used in financing activities | (443.1) | (5.8) |
Net cash flow | 311.8 | 71.1 |
Currency translation adjustments | (10.9) | (26.5) |
Cash and cash equivalents at 30 June | 987.2 | 645.1 |
$ million | Performance drivers six-month period ended 30 June 2021 |
Cash flows | • Cash flows from operating activities primarily reflect the net profit of USD 447.9 |
from operating | million in the six-month period ended 30 June 2021, compared to the net loss of |
activities | USD 33.7 million in the same period in 2020, an improvement of USD 481.6 million, |
and a positive working capital change of USD 26.8 million. | |
Cash flows used | • Cash flows used in investing activities were USD 85.4 million lower than in the six- |
in investing | month period ended 30 June 2020, primarily due to lower cash capital expenditures |
activities | of USD 87.6 million in 2021 compared to USD 163.8 million in 2020, of which |
maintenance capital expenditure was USD 85.4 million and USD 142.6 million | |
respectively. |
Free cash flow1 | 723.3 | 81.5 |
Net debt
$ million | 30 June 2021 | 31 December 2020 |
Long-terminterest-bearing debt | 3,815.0 | 4,226.9 |
Short-terminterest-bearing debt | 205.8 | 189.7 |
Cash flows used in financing activities
- Cash flows used in financing activities were USD 443.1 million in the six-month period ended 30 June 2021, compared to USD 5.8 million in the same period in 2020.
- Net repayments of borrowings and proceeds from borrowings were USD 351.4 million (cash outflow), mainly related to the accelerated repayments of IFCo bonds and 10% of the 2024 and 2025 USD bonds (in total USD 247.2 million) and regular repayments of outstanding borrowings at Sorfert, Fertiglobe Holding and EFC. The remainder is related to regular borrowings and repayments of the revolving credit facilities.
Gross interest-bearing debt | 4,020.8 | 4,416.6 |
Cash and cash equivalents | 987.2 | 686.3 |
Net debt | 3,033.6 | 3,730.3 |
Free cash flow1 | • Free cash flow before growth capital expenditure amounted to USD 723.3 million |
in the six-month period ended 30 June 2021 reflecting the reported EBITDA for the | |
year, working capital inflows, maintenance capital expenditure, dividends to non- | |
controlling interests and cash interest paid of USD 110.2 million. | |
Gross debt | • Gross debt decreased by USD 395.8 million due to repayments of USD 845.8 |
million and impact of exchange differences on Euro denominated debt, partially offset | |
by USD 494.4 proceeds from loans. | |
Cash and cash | • Cash and cash equivalents increased as a result of positive free cash flow to USD |
equivalents | 987.2 million as at 30 June 2021 compared to USD 686.3 as at 31 December 2020. |
Net debt | • Net debt stood at USD 3,033.6 million as at 30 June 2021, down from USD |
3,730.3 million as at 31 December 2020, resulting from the positive free cash flow | |
generation. |
1 OCI N.V. uses Alternative Performance Measures ('APM') to provide a better understanding of the underlying developments of the performance of the business. The APMs are not defined in IFRS and should be used as supplementary information in conjunction with the most directly comparable IFRS measures. The definition of the APM and a detailed reconciliation between the APM and the most directly comparable IFRS measure can be found on pages 16 - 17 of the report.
OCI N.V. Semi-annual report 2021 3
OCI N.V. SEMI-ANNUAL CONDENSED CONSOLIDATED FINANCIAL STATEMENTS / JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
30 June | 31 December | ||
$ millions | Note | 2021 | 2020 |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 5,969.1 | 6,244.3 | |
Right-of-use assets | 265.3 | 279.4 | |
Goodwill and other intangible assets | (8) | 485.8 | 486.5 |
Trade and other receivables | 2.6 | 3.5 | |
Equity-accounted investees | 498.1 | 468.7 | |
Financial assets at fair value through other comprehensive income | 26.9 | 30.0 | |
Deferred tax assets | 0.7 | 0.8 | |
Total non-current assets | 7,248.5 | 7,513.2 | |
Current assets | |||
Inventories | 272.3 | 293.8 | |
Trade and other receivables | 641.3 | 600.9 | |
Income tax receivables | 19.3 | 2.8 | |
Cash and cash equivalents | 987.2 | 686.3 | |
Total current assets | 1,920.1 | 1,583.8 | |
Total assets | 9,168.6 | 9,097.0 | |
OCI N.V. Semi-annual report 2021 4
OCI N.V. SEMI-ANNUAL CONDENSED CONSOLIDATED FINANCIAL STATEMENTS / JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED AS AT
30 June | 31 December | ||
$ millions | Note | 2021 | 2020 |
Equity | |||
Share capital | 5.6 | 5.6 | |
Share premium | 6,316.3 | 6,316.3 | |
Reserves | (358.8) | (338.4) | |
Retained earnings | (4,606.8) | (4,851.8) | |
Equity attributable to owners of the Company | 1,356.3 | 1,131.7 | |
Non-controlling interests | 1,506.8 | 1,540.1 | |
Total equity | 2,863.1 | 2,671.8 | |
Liabilities | |||
Non-current liabilities | |||
Loans and borrowings | (9) | 3,815.0 | 4,226.9 |
Lease obligations | 239.2 | 248.6 | |
Trade and other payables | 23.7 | 25.7 | |
Provisions | 3.0 | 3.0 | |
Deferred tax liabilities | 523.3 | 515.5 | |
Total non-current liabilities | 4,604.2 | 5,019.7 | |
Current liabilities | |||
Loans and borrowings | (9) | 205.8 | 189.7 |
Lease obligations | 41.7 | 43.6 | |
Trade and other payables | 1,293.7 | 1,003.6 | |
Provisions | (14) | 135.9 | 158.3 |
Income tax payables | 24.2 | 10.3 | |
Total current liabilities | 1,701.3 | 1,405.5 | |
Total liabilities | 6,305.5 | 6,425.2 | |
Total equity and liabilities | 9,168.6 | 9,097.0 | |
The notes on pages 10 to 15 are an integral part of these condensed consolidated financial statements.
OCI N.V. Semi-annual report 2021 5
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OCI NV published this content on 02 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2021 05:51:05 UTC.