Morocco’s OCP Turnover Reaches $8.32 Billion in First Nine Months of 2022

OCP attributes the performance to the turnover increase in selling prices across all of its product categories.

Rabat - Morocco’s fertilizer giant OCP Group has announced a turnover of MAD 89.5 billion ($8.32 billion) throughout the first nine months of 2022.

The number represents a 55% year-on-year increase compared to the same period last year.

OCP celebrated solid market conditions throughout the first nine months, attributing the performance to the increase in selling prices across all of its product categories.

Rock sales increased by 74% compared to the same period last year, while phosphoric acid revenue was slightly down by 6% year-on-year due to lower export volumes to Europe and India. Fertilizer sales, however, increased by 68% due to the rise in selling prices.

Phosphate fertilizer prices witnessed a gradual decline in the second half of 2022 due to lower demand from key markets, particularly Brazil.

The decline in sulfur prices over the third quarter resulted in lower sales figures.

The company’s earnings before interest, taxes, depreciation, and amortization -- also known as EBITDA improved to 48% compared to 42% in the same period last year.

The improvements in OCP’s EBITDA strengthened the group’s position in the sector as well as its ability to adapt its production and “redirect” its exports to “high-growth markets” thanks to OCP’s industrial “flexibility and commercial agility.”

OCP announced that they expected a decline in fertilizer prices in the third quarter, explaining it was “due to demand impacted by record prices in the first half of the year as well as high inventory levels and unfavorable weather conditions in some regions.”

The group emphasized that fertilizer continues to dominate OCP’s largest share of sales, representing 65% of total sales at the end of September compared to 60% during the same period last year.

High-demand markets, including South America, Asia, and Africa accounted for 87% of the group’s export volume over the 2022 period.

OCP group also reported an investment expenditure mounting to MAD 15.22 million against MAD 7.12 million from a year earlier.

In 2021, the group generated a revenue of $9.4 billion.

Morocco’s OCP Group manages the majority of Morocco’s phosphate assets. Morocco holds 75% of the globe’s reserves of phosphate rock, a crucial element used in fertilizer production.