Fertikem Egypt for Fertilizers and Chemicals has announced the approval of a profit distribution proposal for the fiscal year ending December 31, 2025, which includes distributing 500 million pounds to shareholders, at a rate of 1.25 pounds per share, or its equivalent in dollars according to the exchange rate on the day of the general assembly.
The proposal also includes setting aside 109.2 million pounds as a legal reserve, in addition to allocating 55.26 million pounds as a profit share for the company's employees, and 38.5 million pounds as bonuses for board members. Meanwhile, an amount of 1.54 billion pounds has been carried over to the next year to support the company's financial position.
Details of the Event
Fertikem has revealed significant developments regarding its strategic project to establish a complex for extracting and concentrating phosphate ore. The company confirmed that it is in the process of establishing a new joint-stock company under the name Nile Fertikem for Phosphate Fertilizers, with an issued capital of 400 million pounds.
This project aims to establish an integrated industrial complex in the Sokhna industrial area, specializing in the extraction and concentration of phosphate ore and producing high-value-added phosphate fertilizers. The ownership structure of the new company is distributed as follows: 60% to Fertikem, 30% to Poly Serve, and 10% to other shareholders.
Background & Context
This step comes as part of Fertikem's efforts to enhance its competitiveness in the fertilizer market, especially with the growing global demand for phosphate fertilizers. The extraordinary general assembly of the company approved the amendment of Article (39) of the bylaws, granting the company greater flexibility in choosing the locations for its meetings.
The general assembly also approved the renewal of the company's term for 25 years, starting from January 28 of this year until January 27, 2051. The company's profits doubled during the first nine months of last year, reaching 2.01 billion pounds, compared to a profit of 42.6 million pounds during the same period of the previous year.
Impact & Consequences
Fertikem aims to enhance its exports, which represent about 50% of total production, targeting to reach 150 million dollars in exports by the end of 2025. The company is also working on implementing a new nitrogen fertilizer project with investments reaching 40 million dollars, reflecting its commitment to expanding its product range.
In this context, the company is exploring ways to benefit from issuing carbon certificates as part of its future plan to enhance environmental and financial sustainability, reflecting the global trend towards reducing carbon emissions.
Regional Significance
This development represents an important step in enhancing Egypt's position as a regional hub for the fertilizer industry, especially given Fertikem's expertise and ability to access multiple markets. The expansion in phosphate and nitrogen projects reflects the company's commitment to supporting the local economy and creating new job opportunities.
In conclusion, these steps emphasize the importance of the agricultural and industrial sectors in Egypt, highlighting the role of major companies like Fertikem in achieving sustainable development and enhancing competitiveness in global markets.