The Office Chérifien des Phosphates (OCP) Group delivered impressive financial results in the first half of 2024, showcasing double-digit growth in its key performance indicators, according to a press release. The Group’s revenue climbed to MAD 43.24 billion by the end of June 2024, up from MAD 37.56 billion during the same period last year.
The revenue increase was primarily driven by a surge in export volumes, which offset the impact of lower selling prices across all three segments: rock, fertilizers, and acid.
Fertilizers and phosphoric acid experienced strong demand in key importing regions, notably Europe and Africa. Also, solid acid benefited from robust demand in Europe and a growing market in India.
The Group’s earnings before interest, taxes, and depreciation (EBITDA) soared by an impressive 113% to MAD 16.31 billion in the first half of 2024, up from MAD 7.67 billion in the same period last year.
This strong performance resulted in an EBITDA margin of 38%, surpassing the industry average, according to the statement, which emphasizes “the Group’s operational efficiency and solid financial health throughout its value chain.”
The same source indicated that operating profit also saw significant growth, reaching MAD 11.80 billion in the first half of the year, compared to MAD 2.42 billion during the same period in 2023.
At the end of the second quarter of 2024, the Group’s cash and cash equivalents had grown to MAD 15.71 billion. Concurrently, net financial debt stood at MAD 81.02 billion, leading to a gearing ratio of 2.13x, a slight improvement from the 2.32x recorded at the end of the previous year.
The CEO of OCP Group, Mostafa Terrab, stated that “the Group capitalized on increased fertilizer production capacity to meet rising demand in several strategic markets while enhancing our production efficiency and operations throughout the entire value chain.”
He pointed out that market conditions during this period were characterized by limited supply and growing demand, resulting in a significant decline in global inventories.
In this regard, Terran said that the group leveraged its industrial and commercial agility to deliver substantial quantities of specialized products, such as Triple Super Phosphate (TSP), to meet rising demand in certain regions.”
He added that “these capabilities, along with our strong position in cost management, enhance OCP’s competitiveness and support margins that are among the highest in the industry.
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