Energy group OCI Global, which supplies green methanol to Maersk’s first sustainable ship, has experienced financial hardship in recent months, as evidenced by the Dutch company’s quarterly report.

While Maersk’s prestigious ship, Maersk Solstice, is on its 21,500-kilometer maiden voyage from South Korea to Copenhagen with green methanol in the tank and ship’s engine, OCI Global has delivered a Q2 report with significant fluctuations in results.

OCI Global, which manufactures and distributes various hydrogen products for raw materials, fertilizers and fuels for transportation, agriculture and industrial customers, has been hit by falling sales prices and rising costs, according to its financial statements.

However, prices are allegedly recovering for nitrogen, but remain weak for methanol.

”Looking ahead, we are seeing a recovery in our markets and hydrogen growth initiatives progressing at speed, enhancing our status as a global leader in the energy transition,” says Ahmed El-Hosthy, CEO of OCI Global, in the statement.

Last-minute supplier

In June, Maersk brought in OCI Global as the supplier of the green methanol at the last minute, as the factory of the previous supplier, European Energy, was delayed. 

Although Maersk has chosen OCI Global to supply the green methanol for Maersk Solstice’s maiden voyage, it is not certain that new orders will follow.

However, OCI Global’s CEO has high expectations for methanol as a marine fuel, and he expects demand for green methanol to exceed 6 million tonnes over the next three to five years.

”We are pleased to be partnering with some of the leading global shipping companies, including Maersk and Xpress Feeder Lines, and continue to see robust demand from many other shipowners,” says El-Hosthy, without giving names.

In addition to the first green ship, Maersk has 25 other container ships on order at shipyards. These ships will have dual-fuel engines and will thus be able to run on green methanol or traditional bunker oil.

Revenue halved

OCI Global says it is the world’s largest producer of ”low-carbon methanol.” But in the most recent quarter, OCI Global had to swallow the fact that revenue halved to USD 1.4bn compared to the same period last year.

Adjusted net income ended with a loss of USD 6.5m compared to a profit of USD 528m in the corresponding quarter last year. For the first six months, OCI Global has reached a top line of USD 2.7bn and an adjusted net profit of minus USD 22m. 

This is far below the level from the same half of last year, when revenue amounted to USD 5.2bn and the adjusted bottom line reached USD 882m.

OCI Global, which has doubled its net debt to USD 2.2bn in the last twelve months, has initiated a savings program that should lead to lower costs of USD 100m by 2024.

(Translated using DeepL with additional editing by Kristoffer Grønbæk)