OCP’s turnover jumped 72% in the first half

In the first half, at the end of June, the Office Cherifien des Phosphates (OCP) recorded a 72% increase in its turnover, which reached 56 billion dirhams (€ 5.6 billion).

OCP achieved exceptional financial performance in the first half of 2022. The increase in product prices, combined with our constant efforts in production cost optimization and operational efficiency, resulted in an EBITDA margin of 50 %, among the best in the sector. Average phosphate fertilizer prices more than doubled compared to the first half of last year, due to a combination of factors including, rising input costs, supply chain disruptions, export restrictions, and finally growing global demand “, indicates the press release.

The fertilizer segment saw the most significant growth, with revenue up 69% year-on-year, representing a record 63% share of its total revenue compared to 60% a year ago . This strong performance reflected higher prices which mitigated the impact of lower export volumes.

Gross margin for the period reached 37,976 million dirhams (US$3.90 billion), well above the 21,177 million dirhams (US$2.38 billion) recorded a year earlier, benefiting from strong prices which more than offset the impact of rising input costs, namely sulfur and ammonia.

First-half 2022 EBITDA increased 124% year-over-year to $2.89 billion from $1.41 billion a year ago. EBITDA margin hit a record 50%, reflecting higher pricing and continued operational efficiency, the statement said.

This enabled the group to invest up to 7,850 million dirhams ($809 million), compared to 4,301 million dirhams ($482 million) over the same period in 2021.

Leave a Comment

Your email address will not be published.