Abu Dhabi‑listed Fertiglobe is trucking its nitrogen fertilizer out of the Gulf because the Strait of Hormuz remains effectively closed after the US‑Israel‑Iran conflict. CEO Ahmed El‑Hoshy said the state‑backed group runs its UAE plants at full capacity and moves cargo by land to ports outside the chokepoint before loading ships. Double handling adds cost, but soaring prices keep the operation profitable.

Fueling the surge are higher global urea prices, which have nearly doubled since the war, according to CRU. Fertiglobe, majority owned by Adnoc, has stored cargo on site, at external ports and in floating tanks, keeping more than one vessel ready to sail once the strait reopens. The company’s diversified footprint—only 30‑35% of output in the UAE—buffers it against Gulf‑only rivals.

First‑quarter results reflected the price lift: adjusted EBITA rose 31% to $342 million, while net profit jumped 98% to $145 million. Two‑thirds of the lift came before the recent price surge, meaning further gains may surface as deferred sales mature. The reduced UAE tax rate—15% on the first $100 million of profit—boosts cash flow.

While the strategy keeps Fertiglobe profitable amid a chokepoint crisis, El‑Hoshy warns that prolonged disruption could strain supply chains and lift food prices. Investors will monitor how quickly the Strait of Hormuz clears and whether higher freight costs erode margins. The firm’s ability to reroute shipments and hold inventory will decide its long‑term resilience.