Rabat – Morocco’s OCP Group, a global leader in phosphate-related industries reported a net revenue of MAD 57,646 million ($ 6.45 billion) in the first three quarters quarter of 2021 (QE 3), increasing by a staggering 38% from the same period in 2020, according to the OCP Earning Release Report.
Amid a tumultuous market that saw demand and prices increase sharply over the past nine months, OCP was able to offset lower fertilizer sales volume though increased prices. “Higher crops prices and low inventories in key markets supported strong demand fundamentals,” OCP noted.
A current global supply chain crisis, lower gas reserves and higher production costs have seen a significant shift in the fertilizer market in 2021. Several of OCP’s competitors have been forced to reduce fertilizer production in the face of rising production costs.
Market dynamics meant that OCP benefited from a 47% increase in phosphoric acid revenues vis a vis last year’s prices, as well as a 25% increase in revenues from phosphate rock sales. The results show that OCP is enjoying the results of positive market fundamentals that are set to continue to grow in 2022.
Strong performance
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The report specifies that the phosphate group’s gross profits in QE3 of 2021 rose to MAD 37,875 million ($ 4.23 billion), marking an increase from the MAD 26,829 million ($ 2.79 billion) recorded in QE3 of 2020.
OCP’s strong quarterly performance is supported by robust global demand, skyrocketing market prices as well as cost-optimized operations.
With access to over 70% of global phosphate raw material, the group’s fertilizers exports comprised 60% of the nine-month revenues.
OCP’s market outlook projects a strong performance for the company’s earnings throughout 2022. As demand in key fertilizers importing regions strengthens, phosphate prices are expected to gain more momentum throughout 2022, positively impacting the company’s revenues as a global supplier.
Currently a global leader in rock mining, phosphoric acid manufacturing, all relating to phosphate fertilizer production essential for agriculture activities, the group is seeking to further diversify its portfolio by providing more products and services.
