OCP Group revenue exceeds MAD 89 million by end of September

The OCP Group said its revenues reached MAD 89,538 million by the end of September, up compared to MAD 57,646 million in the same period in 2021.

“OCP’s results benefited fully from the global price increase, with record operating and financial performances,” added the Group in a recent press release received by Hespress EN.

“The 48% in the industry-leading EBITDA (earnings before interest, taxes, depreciation, and amortization) margin reflects the ability to adapt the Group’s production and to redirect our exports to high-growth markets thanks to our industrial flexibility and commercial agility,” added the same source.

In this context, the Group showed a significant increase in its EBITDA of 76% and a 55% growth in sales, amounting to MAD 42,964 million by the end of September, up from MAD 24,478 million recorded during the same period in 2021.

The increase in sales prices, as well as the Group’s operational efficiency, resulted in a strong EBITDA margin of 48%., further stated the same source.

Capital expenditure also amounted to MAD 15,226 million, compared to MAD 7,126 million recorded during the same period last year.

Fertilizers continue to represent the largest share of sales, accounting for 65% of total sales at the end of September 2022, up from 60% recorded during the same period last year, said the same source.

High-demand markets such as South America, Asia, and Africa accounted for 87% of the Moroccan Group’s exports by volume over the period, added the same source.

“In line with expectations, fertilizer prices fell in the third quarter due to demand being impacted by record prices in the first half of the year as well as high inventory levels and adverse weather conditions in some regions,” explained the OCP Group.

Over the period, rock turnover increased by 74% compared to the same period last year, mainly as a result of higher prices which mitigated the decline in export volumes, further stated the same source.

Phosphoric acid turnover was down slightly by 6% year-on-year, as a result of lower export volumes, mainly to Europe and India, which more than offset the increase in phosphoric acid prices.

Additionally, nine-month sales for fertilizers increased by 68%, mainly due to improved sales prices which offset the impact of lower export volumes.

Gross profit amounted to MAD 56,246 million, up from MAD 37,875 million in the first nine months of 2008. 37,875 million recorded a year earlier.

The improvement in sales prices largely offset the rise in raw material costs, namely ammonia and sulfur, specified the Group.

Overall, EBITDA for the first nine months of 2022 grew by 76% year-on-year to reach MAD 42,964 million, compared to MAD 24,478 million recorded during the same period last year.

Earnings from operations amounted to MAD 36,328 million, significantly higher than the MAD 17,735 million recorded during the same period last year, according to the same source.