Rabat – Morocco’s Office Cherifien des Phosphates (OCP) has reported that its 2018 revenues jumped by 15 percent to MAD 55.9 billion over 2017.
OCP group gave the figures in its annual outcomes report for 2018 on Monday.
The group said that the positive result was supported by demand for higher volumes and higher prices for both phosphoric acid and fertilizer. Volumes and prices remained stable for phosphate rock.
“These positive results further strengthened the Group’s position as the largest global exporter of phosphate fertilizers, while it has maintained its market-leading positions in phosphoric acid and rock,” wrote the group in a press release.
OCP reported that in 2018 fertilizer revenues grew by 20 percent compared to 2017 and represented 55 percent of its total revenues, an increase from 45 percent in 2014.
The growth in fertilizer revenue is explained by higher demands globally. North America imported 24 percent of OCP’s exports, Latin America 23 percent, Africa 22 percent, Asia 16 percent, and Europe 15 percent.
Rock and phosphoric acid each represented 18 percent of OCP’s total revenue. OCP exported the majority of its phosphoric acid, sales of which grew 39 percent, to Asia, Latin America, and Europe.
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OCP said that its earnings before interest, tax, depreciation, and amortization (EBITDA), were MAD 17.1 billion in 2018, up by 34 percent from 2017.
The company reported that its earnings before interest and taxes (EBIT) in 2018 were MAD 11.3 billion, up by 71 percent from 2017.
By the end of 2018, OCP’s net financial debt was MAD 35.2 billion, down from MAD 43.9 billion in 2017. The leverage ratio was 2.02.
OCP predicted that 2019 will be prosperous with increased demand and consumption led by a stronger spring application season in North America, improved weather conditions in Europe, a pick-up in Brazil, and higher demand from Africa.
