The OCP Group announced on November 20 its financial results for the third quarter of 2023, which recorded a significant rebound in profitability.
This performance growth was primarily driven by improved phosphate product prices and a recovery in demand in the Group’s main importing regions.
According to a press release, the OCP Group recorded revenues of MAD 61.0 billion as of September 30, 2023, supported by a robust EBITDA (earnings before interest, taxes, depreciation, and amortization) of MAD 17.2 billion. EBITDA margin increased sharply from 20% in the second quarter to 28% in the third quarter, testifying to the success of OCP’s strategies.
This growth was achieved against a favorable market backdrop, marked by an improvement in conditions from July and August 2023 onwards. This improvement generated a rise in demand, stimulated by low inventory levels and favorable economic conditions for farmers. In addition, phosphate fertilizer prices have seen a gradual recovery, mainly due to lower Chinese exports and increased demand from key importing regions.
The OCP Group benefited from an important decision in October 2023, when the U.S. Department of Commerce drastically reduced countervailing duties on imports of Moroccan phosphate fertilizers from 19.97% to only 2.12%. This measure, effective as of the beginning of November 2023, is expected to strengthen the Group’s competitiveness within the American market until the next administrative review scheduled for the fourth quarter of 2024.
At the operational level, the Group recorded lower sales than those of the same period in 2022, mainly due to lower sales prices; however, this decrease was balanced by a significant increase in sales volumes, notably for TSP (Triple Super Phosphate), a highly-demanded fertilizer for leguminous crops in Latin America.
OCP Group is committed to innovation and expansion, with the commissioning of the first three new fertilizer production lines. The other two lines will be operational in the first half of 2024, enabling the OCP Group to efficiently meet the growing demand for fertilizers in the global market.
