OCI Global Bolsters Cash Reserves Following Sale of OCI Ammonia and Exit from Methanex
OCI Global has completed the sale of OCI Ammonia Holding to AGROFERT and fully monetized its stake in Methanex Corporation. The balance sheet is significantly enhanced, with net cash reaching $1.08 billion as of May 29, although the profitability of the remaining operations is squeezed by high energy costs and increased operational volatility.
Massive Disengagement Transforms Group Structure
OCI Global finalized a major strategic redeployment in the first quarter. The sale of its subsidiary Ammonia (OCI Ammonia Holding) to AGROFERT was concluded on March 31 for 290 million euros, generating approximately $319 million in net proceeds after adjustments. The group also divested its entire stake in Methanex Corporation (9.9 million shares, representing 12.9% of the capital) through a series of block trades during and after the quarter, achieving an average weighted price of $54.56 per share, which is 21% above the entry price set in September 2024, totaling about $543 million net. Concurrently, the group sold the new Beaumont ammonia unit to Woodside on March 25, receiving $470 million in deferred consideration (20% of the total amount). These three transactions crystallize the resizing strategy, now focusing operational activities around OCI Nitrogen (OCIN), the European nitrogen operation, while strategic steps are underway for the latter.
Remaining Operations Under Margin Pressure, Despite Higher Volumes
OCI Nitrogen's standalone adjusted EBITDA stands at $52 million in Q1 2026. Own product sales volumes reached 539 thousand tonnes, up from 484 thousand tonnes in Q1 2025, reflecting a relative recovery in activity. However, this volumetric improvement did not translate into increased profitability: margins remain compressed due to high natural gas input costs, despite a more favorable nitrogen pricing environment during the period and the support of some energy hedges. OCIN's operational free cash flow in Q1 was negative at $33 million, penalized by a working capital outflow of $76 million, mainly reflecting the unwinding of creditor and debtor optimizations made at the end of 2025. A temporary operational issue affected one of the ammonia lines, requiring imports to fill the gap; this line has since restarted. Going forward, short-term cash performance will be impacted by scheduled maintenance shutdowns and the normalization of working capital.
Significantly Strengthened Balance Sheet, but Elevated Headquarters Costs
The group shows a net cash position of $695 million as of March 31, 2026 (excluding proceeds from Methanex sales realized after this date), compared to a net debt position of $54 million on December 31, 2025. Adjusted for Methanex proceeds collected after March, the group's net cash reaches approximately $1.08 billion as of May 29. This strengthening reflects the cash inflows from the sales of Beaumont and OCI Ammonia Holding and the monetization of the Methanex stake, partially offset by ongoing HoldCo costs (including non-recurring items) and the elimination of OCI Ammonia's net cash post-divestiture. Corporate costs of the Corporate Entities amounted to $18.5 million in Q1 2026, remaining high in light of the previously guided target. This overhead reflects costs related to Enterprise Chamber procedures, the potential sale of OCI Nitrogen, the unwinding of the Beaumont project claims, and other non-recurring costs (severance payments, contractual commitments, transaction, banking, legal, and advisory fees). For 2026, these costs are expected to exceed the annualized pace of Q1, due to these persisting factors.
