OCP records an increase of 19% in its turnover in H1-2021

OCP Group achieved an increase of 19% in its turnover in the first half of 2021, compared to the same period of last year, reaching MAD32,479 million against MAD27,403 million recorded at the end of June 2020, according to OCP’s published results report.

Over this period, the turnover of rock increased by 11%, while the turnover of phosphoric acid and phosphate fertilizers increased by 27% and 20% compared to the same period of last year.

“This performance is part of a long-term investment perspective in growth programs and sustainable development,” said Chairman and CEO of OCP Mostafa Terrab in the same report.

“Our constant support has been a key factor in OCP’s ability to strengthen its position as a world leader in terms of exports while responding to the high-growth markets’ needs,” he added.

The Group’s operational efficiency, as well as the increase in selling prices, largely offset the increase in sulfur and ammonia costs, resulted in an increase of 21% in gross margin, to achieve MAD21,177 million, against MAD17,487 million recorded a year earlier.

OCP’s operating profit amounted to MAD 8,059 million, significantly higher than MAD 871 million recorded last year.

The operating income for the first half of 2020 was mainly impacted by the non-recurring charge of MAD3 billion relating to OCP’s contribution to the Special National COVID-19 Fund, observed in the second half of 2020.

The drop in exported fertilizer volumes is mainly due to the low level of OCP product stocks in early 2021, given the record production and export volumes achieved in 2020, which included more than 11 million
tonnes of fertilizer. In addition, OCP Group has redirected part of its exports to phosphoric acid to meet the market needs.

At the end of June 2021, cash amounted to MAD 15,085 million, whereas the net financial debt reached MAD48,351 million at the end of December 2020.

Recently, OCP Group and the International Finance Corporation (IFC) have signed a milestone financing agreement, aiming to combat poverty as well as creating opportunities in Africa while helping the region endure the economic fallout of the COVID-19 pandemic.