OCP’s turnover in the first half of 2022 increased sharply (72%) reaching 56.018 billion dirhams, compared to 32.479 billion dirhams in the first half of 2021.
OCP Group performs at the end of June 2022. are reflected in an EBITDA margin of 50%, among the best in the sector. Average phosphate fertilizer prices more than doubled compared to the first half of last year, thanks to a combination of factors including rising input costs, supply chain disruptions, restrictions for export, and finally a growing world demand.
Substantial revenue growth was achieved in each of our segments, with higher prices more than offsetting lower volumes,” the company said in a statement. And to continue: “The fertilizer segment recorded the most significant progress, with sales up 69% year-on-year, representing a record share of 63% of our total sales compared to 60% it a year ago. We continued to maintain a geographically diverse customer base, and high-demand markets like South America and Africa accounted for 56% of our first-half revenue.”
The main competitive advantages are, according to the company, commercial agility, industrial flexibility across the entire value chain and cost control. These elements made it possible to achieve “significant growth in EBITDA and in operating profit significantly higher than that of turnover in the first half of 2022”. OCP’s management also indicates that the Group has continued, as anticipated, with its capacity expansion plans as well as its investments in environmental and social programs. It must be said that OCP’s turnover in the first half of 2022 increased sharply (72%) reaching 56.018 billion dirhams, against 32.479 billion dirhams in the first half of 2021. For rock, turnover is up growth of 63% compared to the same period of the previous year, mainly reflecting the year-on-year improvement in prices amid lower 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.
Moreover, EBITDA amounted to 28.084 billion dirhams, up from the 12.53 billion dirhams achieved a year earlier. It shows that the Ebitda margin improved to stand at 50%, against 39% the previous year. Regarding investment expenditure, it totaled 7.85 billion dirhams, compared to 4.30 billion dirhams recorded during the same period in 2021. At the end of June 2022, cash and cash equivalents amounted to 19.835 billion dirhams ($1.95 billion). For its part, the net financial debt reached 45.235 billion dirhams with a financial leverage ratio of 0.87x which compares to 1.24x, posted at the end of December 2021. It should be noted that OCP has launched a major initiative to help African farmers during this period of significant price increases in line with its commitment to preserving global food security and its farmer-focused mission. “The Group’s contribution materializes through rebates on 550,000 tonnes of fertilizer, representing approximately 16% of Africa’s total annual needs, to mitigate the impact of soaring commodity prices and droughts. This program should benefit more than 4 million farmers on the continent,” concludes the same source.