OCP’s number of transactions decrease in second half of 2023

The Cherifien Phosphates Office’s (OCP) turnover in the first half of 2023 showed a decline in results.

Although it does not represent the anticipated annual performance,  instead, it just represents a lag of higher performance towards the second half.

OCP’s turnover was MAD 19.2 billion in the second quarter of the current year compared to MAD 37.5 billion in the first half.

The number of transactions completed during the first half of the current year fell by 33% when compared to the same period in the previous year, but rose by roughly 16% when compared to the same period in 2021, according to a press release by OCP. 

The number of transactions completed in the second quarter declined by 37% compared to the same period in 2022, while it climbed by 6% when compared to the same period in 2021.

The OCP Group kept up its investment strategy, increasing it by 53% to a total of MAD 12 billion in the first half of the year. Investments totaled MAD 6.3 billion in the second quarter, a 31% rise.

This decrease in the number of OCP’s transactions, whether in the second quarter or the first half, is the result of the year’s declining demand, as well as the falling prices of raw materials globally and the exceptional nature of the outcomes in 2022, when the cost of materials and fertilizers reached high records.

It is anticipated that the drop in performance in relation to market circumstances in the first half, in terms of lower demand and pricing, will have an impact on the group’s semi-annual financial results, which will be released in September.

There are indications that the second half of the current year will be characterized by a recovery in demand and the restoration of pricing to stable levels.