+72% turnover in the first half for OCP

Dn a press release made public this Thursday, September 22, the OCP group announced its results for the first half of 2022.

Explaining that fertilizer prices have gradually increased in the first half of 2022, mainly reflecting tight supply conditions following shortages fueled by the conflict between Ukraine and Russia and reduced exports from China, the group recalls that demand in Europe and the United States was strongly affected, considering the impact of unfavorable weather conditions in these areas.

Thus, in the first half of 2022, OCP’s turnover increased by 72% compared to the same period of the previous year, to reach 56,018 million dirhams against 32,479 million dirhams at the end of June 2021. This performance is mainly explained by an increase in selling prices in the three segments which largely compensated for the drop in sales volumes, the group said in its press release.

For rock, revenue increased 63% from the same period a year earlier, the release said, primarily reflecting year-over-year pricing improvement amid declining export volumes to most major importing regions.

Higher selling prices resulted in an increase in phosphoric acid sales of 24% year-on-year in local currency. This price increase was partially offset by lower acid export volumes to Asia, due to the postponement of phosphoric acid imports to the second quarter.

In fertilizers, sales in the first half increased by 69%, reflecting higher prices, which mitigated the impact of lower export volumes.

Gross margin for the period reached 37,976 million dirhams, well above the 21,177 million dirhams recorded a year earlier, benefiting from solid prices which more than offset the impact of higher input costs, namely sulfur and ammonia.

EBITDA or BAIIA in French (for Profit before interest, taxes and amortization) for the first half of 2022 increased by 124% to reach 28,084 million dirhams, compared to 12,533 million dirhams a year ago.

Regarding the operating result, it amounted to 23,870 million dirhams, a result clearly higher than the 8,059 million dirhams recorded a year ago.

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