OCP Group: exceptional performance in the first half

The OCP group has just published its half-year results, which show an increase in its turnover of around 72%, for a record of more than 56 billion dirhams.

Fertilizer prices have gradually increased in the first half of 2022, mainly reflecting tight supply conditions following shortages fueled by the Ukraine-Russia conflict and reduced exports from China, says OCP Group. in a press release released this Thursday, September 22.

Fertilizers were less accessible to farmers, due to soaring prices, which affected demand in Europe and the United States, which were strongly impacted by unfavorable weather conditions, the statement continued.

In the first half of 2022, OCP’s turnover increased by 72% compared to the same period of the previous year, to reach 56.01 billion dirhams against 32.47 billion dirhams at the end of the year. June 2021. This performance is mainly explained by an increase in selling prices in the three segments, which more than offset the drop in sales volumes, said the Office.

For the Roche segment, revenue increased 63% year-on-year, primarily reflecting year-over-year pricing improvement amid lower volumes export 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.

First-half fertilizer sales increased 69%, reflecting higher prices, which mitigated the impact of lower export volumes.

Gross margin for the period reached 37.97 billion dirhams, well above the 21.17 billion dirhams recorded a year earlier, benefiting from solid prices, which more than offset the impact of higher input costs , namely sulfur and ammonia.

EBITDA for the first half of 2022 increased by 124% year-on-year in local currency to reach MAD 28.08 billion, compared to MAD 12.53 billion a year ago. EBITDA margin reached a record 50%, reflecting higher prices and continued operational efficiency.

Operating income amounted to 23.87 billion dirhams, significantly higher than the 8.05 billion dirhams recorded a year ago.

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