OCI Global Exits Methanex Stake as FY 2025 Results Show Sharp Operational Decline

OCI Global (Euronext: OCI) has sold its remaining 3.3 million Methanex shares for $172.6 million, reducing its stake to 8.6%. The move comes as the Dutch chemicals company reports a steep 61% drop in FY 2025 revenue amid portfolio restructuring.

OCI Global (Euronext: OCI) has completed the exit from its Methanex Corporation holding, selling 3.3 million shares on March 13, 2026, for $51.80 per share and generating net proceeds of approximately $172.6 million. The accelerated block sale reduces OCI's ownership to 6.6 million shares, or 8.6% of Methanex's outstanding equity, marking a strategic shift in the Dutch chemicals group's capital allocation after months of business disposals and restructuring.

As of: 16.03.2026

By James Hartley, Senior Chemicals & Materials Correspondent. OCI's Methanex exit signals a return to core nitrogen and clean ammonia businesses after aggressive portfolio simplification.

Methanex Stake Sale: Scale and Timing

The sale of 3.3 million Methanex shares completed the liquidation of OCI's participation in the methanol producer, which began in June 2025 when OCI closed the transaction that gave it the initial stake. The March 13 block trade priced the shares at $51.80 each, reflecting a modest premium to Methanex's 200-day moving average of $39.13 and broadly in line with analyst consensus targets of $56.78. OCI retained a small strategic position of 6.6 million shares, equivalent to 8.6% of Methanex, suggesting it may preserve optionality in the methanol space.

The timing of the sale follows the expiration of a customary lock-up period in October 2025, giving OCI flexibility to monetize the holding at a strategic moment. For European investors tracking OCI through Euronext, the capital release of $172.6 million underscores management's focus on deleveraging and funding core operations rather than building diversified chemical portfolios.

FY 2025 Results: Steep Decline Reflects Portfolio Reshaping

OCI Global's full-year 2025 financial results, reported alongside the Methanex share sale, reveal the depth of operational contraction across the group. Total revenue for continuing and discontinued operations fell 61% to $1,605 million from $4,084 million in 2024. Adjusted EBITDA declined 85% to $122 million from $826 million, illustrating the earnings impact of divesting major business units and scaling back lower-margin operations.

The sharp downturn reflects the deconsolidation of several divested businesses that occurred throughout 2024 and 2025, most notably the sale of the Clean Ammonia business in 2024 and the partial exit from Fertiglobe, OCI's joint venture with the Abu Dhabi National Oil Company. These transactions were part of a strategic repositioning toward higher-margin nitrogen and clean energy businesses, but they dramatically reduced near-term revenue and earnings visibility.

In the second half of 2025 alone, H2 revenue declined 67% to $544 million from $1,611 million in H2 2024, while H2 adjusted EBITDA fell to $47 million from $234 million. The pace of deterioration underscores how heavily the year-on-year comparisons are weighted toward business exits rather than operational performance improvements in the remaining core portfolio.

Strategic Logic: Return to Nitrogen Core

OCI's exit from Methanex and liquidation of larger holdings reflect a fundamental reset of the company's strategic direction. After years of attempting to build a diversified global chemicals portfolio spanning methanol, ammonia, and fertilizer operations, management has concluded that OCI's competitive advantage lies in its integrated nitrogen platform and emerging clean ammonia capabilities. The methanol holding never reached strategic significance for OCI and appears to have been a tactical holding rather than a cornerstone asset.

The European Nitrogen segment, OCI's flagship operation, recorded revenue growth in 2025 despite the group-wide contraction, signaling that core markets and margin dynamics remain supportive where OCI maintains scale and technical advantage. This contrasts sharply with the collapsing methanol and fertilizer segments, which faced intense competition and commodity headwinds throughout 2024 and 2025.

For German, Austrian, and Swiss investors monitoring OCI through Euronext Amsterdam listings, the strategic refocus on European nitrogen production and clean ammonia development offers clearer visibility into competitive positioning. OCI operates major production facilities in the Netherlands and is positioning itself as a provider of low-carbon ammonia to European industrial customers and hydrogen infrastructure developers, a market dynamic with growing regulatory and customer-driven demand.

Capital Allocation and Debt Reduction

The $172.6 million cash inflow from the Methanex sale serves a critical near-term function: debt reduction and liquidity preservation. OCI's balance sheet underwent material stress during the period of large-scale disposals, as the company had to absorb significant one-time losses on the Fertiglobe exit and other writedowns. The Methanex proceeds provide a buffer to stabilize the capital structure and reduce refinancing risk as OCI navigates a lower revenue base and reduced cash generation capacity.

Management has not provided specific guidance on debt reduction targets or capital allocation priorities for 2026, but the combination of Methanex proceeds and ongoing focus on cash preservation suggests a cautious approach to shareholder returns. Dividend sustainability and working capital management are likely to be priorities as OCI stabilizes under its new, leaner operational footprint.

Valuation and Market Context

OCI Holdings Co Ltd stock (ISIN: KR7010060002) trades on Euronext Amsterdam under the ticker OCI, not on Korean exchanges, despite the ISIN prefix. The sale of Methanex shares at $51.80 per share suggests OCI obtained reasonable value relative to Methanex's implied trading range, as the methanol producer's current price-to-earnings ratio of 17.04 sits near its one-year high and analyst consensus target of $56.78 implies limited upside. Methanex itself shows mixed financial health, with an Altman Z-Score of 1.69 placing it in potential financial distress territory, a signal that OCI may have timed the exit prudently.

For OCI itself, the steep revenue and EBITDA declines in 2025 will weigh on near-term valuations and earnings multiples. Until management can demonstrate stabilization and organic growth from the nitrogen and clean ammonia core, equity investors are likely to apply a holding-company discount to OCI's NAV and restrict valuation upside. European equity analysts will scrutinize 2026 guidance and H1 2026 results heavily to assess whether the cost-reduction initiatives and portfolio simplification are delivering operational improvement as intended.

Operational Challenges and Outlook

The 2025 results and Methanex sale mask underlying operational headwinds that OCI must address to sustain investor confidence. Global nitrogen and ammonia markets remain cyclical, exposed to feedstock energy costs, agricultural demand volatility, and competition from larger integrated producers. OCI's smaller scale compared to industry giants like Yara and CF Industries means it must rely on technical differentiation and regional logistics advantages to maintain margins.

Clean ammonia development offers a long-term growth vector, as European industrial customers and hydrogen-infrastructure players seek low-carbon inputs. However, this market is nascent and capital-intensive, requiring significant capex before generating material revenue contribution. OCI will need to balance near-term cash preservation with strategic investment in clean ammonia production capacity, a tension that may constrain profitability and free cash flow for multiple years.

The absence of updated 2026 guidance in the results announcement or Methanex sale statement reflects management caution. Until OCI provides visibility on stabilized core-business margins, clean ammonia project timelines, and expected revenue trajectory, the stock is likely to trade on a hold-and-wait basis for European equity investors, particularly those in Germany and the broader European Union with exposure to industrial chemicals and energy transition themes.

Key Risks and Catalysts

Downside risks include further commodity price weakness in nitrogen markets, delays in clean ammonia commercialization, refinancing challenges if interest rates remain elevated, and potential additional asset impairments if the value of remaining operations declines. Upside catalysts include announcement of major clean ammonia contracts or partnerships, stabilization of nitrogen margins, debt reduction milestones, and management's credible 2026 guidance demonstrating organic growth recovery.

OCI Global's Methanex exit and FY 2025 results mark a transition from portfolio construction to portfolio optimization and balance-sheet repair. Investors should monitor H1 2026 earnings and capital allocation updates for evidence that the strategic repositioning is translating into operational and financial improvement, particularly within the European Nitrogen segment and emerging clean ammonia initiatives.

Disclaimer: Not investment advice. Stocks are volatile financial instruments.