Rabat – The turnover made by Morocco’s phosphates giant OCP Group reached MAD 61 billion ($6 billion) as of September 2023.
The company acknowledged that the number is less than the revenue made in the same period of 2022 (MAD 89.5 billion; $8.83 billion), attributing the decrease to lower prices of raw materials, fertilizers and phosphoric acid compared to the record level reached last year.
The company, however, celebrated the significant rebound in profitability recorded in the third quarter of 2023.
According to the group, the revenue recorded as of September was accompanied by a robust EBITDA of MAD 17.2 billion ($1.69 billion).
EBITDA is the company’s earnings before interest, taxes, depreciation, and amortization.
The EBITDA margin secured by the OCP Group showed a significant increase, jumping from 20% in the second quarter to 28% in the third quarter.
The group explained that this demonstrates the effectiveness of the strategies implemented by the company, adding that its performance took place in a favorable market context that is characterized by improved conditions from July and August.
The improvement resulted in increased demand due to low stock levels and favorable economic conditions for farmers.
OCP further explained that phosphatic fertilizer prices experienced a gradual recovery, with the situation attributed to the reduction in Chinese exports and the rising demand from key importing regions.
In its statement, the group also celebrated the US State Department of Commerce’s decision to drastically reduce countervailing tariffs on Moroccan phosphatic fertilizer imports to the US.
The group said it had benefited from the decision of October, stressing that the duties decreased from 19.79% to only 2.12%.
Fertilizer revenues decreased by 28% in September, compared to the same period in 2022, the group said, attributing the situation to price reductions. However, this was compensated by an increase in export batches driven by demand from South America and Europe.
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