The Moroccan Cherifian Office for Phosphates (OCP) announced it will pay a historical MAD 8.1 billion in dividends to the government, after a record-breaking year.
The OCP declared a record rate turnover in 2021, which is expected to reach MAD 84.3 billion, compared to MAD 56.2 billion at the end of December 2020, making up a 50% added value increase.
The group recorded earnings before interest, taxes, depreciation, and amortization rate (EBITDA) of MAD 36.3 billion against MAD 18.7 billion at the end of December 2020.
The company’s net revenue stands at MAD 15.5 billion in 2021 against MAD 4 billion in 2020, which prompted the Board of Directors to propose the distribution of MAD 8.1 billion of dividends to its main shareholder, the State.
“The gradual increase in international prices throughout the year, coupled with our ability to meet demand across the value chain, has enabled a 50% increase in our revenues and a 94% increase in EBITDA,” says Mostafa Terrab, Chairman and CEO of OCP Group.
In a statement, the head of OCP says that the office’s “efficient production has more than offset the impact of rising input costs,” enabling the record-breaking year.
The market has been marked by a positive price fluctuation in a rising tendency that has continued into 2021, with phosphate fertilizer prices reaching their highest level in several years, mainly supported by strong demand combined with tight, well-controlled supply from OCP.
Demand in most importing regions was driven by rising crop prices, reflecting the good financial health of farmers and low inventory levels in key markets.
Significant growth was recorded in all phosphate-dependent market segments in 2021, as the fertilizer market grew by 57%, which accounted for 61% of total OCP sales.
Specialty products accounted for a larger share of fertilizer exports in 2021, at 34%, a trend that is expected to continue in 2022, according to the Minister of Finance’s latest report to the government.
OCP Stops Using Natural Water Resources
As Morocco faces an unprecedented drought this year, OCP Group is accelerating its “Water” program, and deploying exceptional measures for 2022, to resort to non-natural water resources.
The Moroccan Cherifian office is using new mobile desalination units to increase its capacities and cover all the water needs of fertilizer production sites in Jorf Lasfar and Safi.
OCP announced that it will stop using natural freshwater resources in its fertilizer production sites as of this year. Natural water resources running through the production plants will now be redirected to strengthen local access to drinking water in the Oum Rabi basin.
In addition to the needs of the production sites, the new solutions deployed by the Group will also make it possible to supply the cities of El Jadida and Safi with drinking water, formerly used in production.
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