Rabat – The turnover recorded by giant fertilizer group’s OCP reached MAD 19.28 billion ($1.90 billion) in the second quarter of 2023, new data shows.
The number comes against a turnover of MAD 30.69 billion ($3 billion) that the OCP Group recorded during the same period last year, the company said.
OCP explained the development and decrease in turnover by the “exceptional prices increase” in 2022 following a drop in the prices of phosphate products worldwide.
The group also attributed the situation to a shift in demand towards the second half of 2023 due to price volatility as well as the impact of inventories formerly built up at high prices for raw materials.
OCP also shared data documenting the efforts the group has made in terms of investments in the industry.
OCP invested nearly MAD 6.4 billion ($631.60 million) in the second quarter of 2023 compared to MAD 4.86 billion ($479.62 million) in the same period last year.
The total investment budget the company spent during the first half of this year totalled MAD 12 billion, reflecting an increase of 53% compared to the previous year.
For OCP, the second half of 2023 shows a recovery supported by the resumption of demand and stable price levels.
“The first half of 2023 is not indicative of the expected annual performance but highlights a shift towards better performance in the second half of the year,” the group added.
In May, OCP announced a turnover of MAD 18.2 billion ($1.79 billion) in the first quarter of 2023.
Read also: Fertilizers Leadership & Pan-Africanism: OCP’s Sustainable Transition Explained
The figure represents a decrease from the same period last year, when sales totaled MAD 25.3 billion or $2.48 billion.
OCP is one of the leading fertilizer groups worldwide. The group manages Morocco’s phosphate assets, with the country holding 75% of the world’s phosphate rock reserves.
With major investments and ambitions, the group announced in July its plans to invest $7 billion in the construction of an ammonia plant in Tarfaya in southern Morocco.
This plant will utilize green hydrogen produced from renewable sources, Reuters reported.
This comes in line with OCP’s recently launched program covering the 2023-2027 period, which details the group’s ambition of increasing fertilizer production and investing in new green fertilizers and renewable energy sources.
The $13 billion program is in line with Morocco’s ambition to reach complete carbon neutrality by 2040.
