Abu Qir Fertilizers’ General Assembly Approves Amendments to the Company’s Articles of Association, Ratifies FY 2022/2023 Financial Statements, and Approves a Cash Dividend of EGP 7 per Share
The Extraordinary and Ordinary General Assembly of Abu Qir Fertilizers and Chemical Industries was held under the chairmanship of Eng. Abed Ezz El-Ragel, Chairman and Managing Director, and under the patronage of Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources. The Chairman welcomed the assembly members and shareholders, expressing appreciation for the company’s management and staff for achieving outstanding results during FY 2022/2023.
Amendments to the Articles of Association
During the assembly, Eng. Abed Ezz El-Ragel presented the agenda of the Extraordinary General Assembly regarding the amendment of Articles 8, 16, 21, and 39 of the company’s Articles of Association to align with the law. The assembly unanimously approved the amendments.
Financial Performance for FY 2022/2023
The Ordinary General Assembly reviewed the company’s financial and operational results for FY 2022/2023. Eng. Abed Ezz El-Ragel highlighted record-breaking performance in production, revenues, and profits, alongside operational efficiency measures that optimized natural gas, electricity, water, and chemical usage, despite some plants being over 44 years old.
Key operational highlights:
- 2 million man-hours worked without injuries
- Sales revenues: EGP 21.6 billion, up 32% from EGP 16.3 billion in the previous year
- Net profit after taxes: EGP 14.6 billion, up 62% from EGP 9 billion in the previous year
- Taxes paid: EGP 3.9 billion, with total contribution to the state (taxes, customs, and social contributions) of EGP 4.662 billion
The company also supplied approximately 17 million bags of fertilizers to the Ministry of Agriculture and Land Reclamation at cost price, highlighting its key role in ensuring Egyptian food security, while exporting fertilizers to over 31 countries and generating foreign currency earnings.
Market Position and Investment in Modernization
- Market capitalization: Exceeded EGP 84 billion as of September 2023, leading the fertilizers sector and ranking as the second-largest company on the Egyptian Exchange by market value.
- Focus on plant renovation and modernization, including:
- Full refurbishment of Abu Qir 3 plant in FY 2021/2022 using state-of-the-art technologies
- Unplanned maintenance of Abu Qir 2
- Preparations for Abu Qir 1 refurbishment, the company’s oldest plant (est. 1979), including ammonia storage tank overhaul, cooling tower installation, ammonia reactor updates, and DCS system upgrades
Digital Transformation and Sustainability Initiatives
In line with directives from Eng. Tarek El Molla, Abu Qir Fertilizers launched its SAP digital transformation (GO-Live), creating an integrated platform connecting all technical and financial operations. The company is the first in Egypt’s fertilizer sector to implement SAP Signavio, leveraging AI to optimize operations and maintain competitive advantage.
New Investment Projects
- North Abu Qir Fertilizers Company: A new joint-stock company with a licensed capital of EGP 10 billion (paid-in capital EGP 1 billion) to produce:
- Ammonia: 1,200 tons/day
- Nitric acid: 1,830 tons/day
- Ammonium nitrate: 2,400 tons/day
- Shareholding structure: Abu Qir Fertilizers 45%, Egyptian General Petroleum Corporation 45%, Egyptian Holding Company for Petrochemicals 10%
- Project under consideration for green conversion and establishment in free-zone system with golden license
Environmental and Renewable Energy Initiatives
- ZLD wastewater treatment unit: One of the largest industrial wastewater treatment units in Egypt, producing secondary products (ammonium sulfate) for agricultural use.
- Solar power plant: 117 kW installed on the company’s social club roof, saving approx. EGP 250,000/year in electricity and reducing CO₂ emissions by 175 tons/year.
Dividend Distribution
The assembly approved a cash dividend of EGP 7 per share, distributed in three installments:
- EGP 2/share on 26/10/2023
- EGP 3/share on 28/12/2023
- EGP 2/share (exceptional distribution) on 31/01/2024, reflecting strong FY 2022/2023 results and available liquidity
