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Rabat – Morocco’s fertilizer giant OCP has recently reported positive indicators, with the group reaching a revenue of MAD 43.2 billion ($4.35 billion) as of June this year.
The number reflects a significant increase as the revenues jumped from MAD 37.6 billion ($3.8 billion), recorded in the same period last year to MAD 43.2 billion ($4.35 billion) in June this year.
A statement from OCP attributed this development to strong demand in importing regions, such as Europe and Africa.
The situation is also the result of a solid demand for solid acid in Europe and an increasing interest in India.
Sharing further data, OCP stated revenues hit MAD 23.7 billion ($2.4 billion) in Q2 this year, stressing that this was boosted by favorable market conditions.
The group also expressed satisfaction with its cost leadership, which yielded a robust EBITDA–earnings before interest, taxes, depreciation, and amortization.
The EBITDA margin reached 38%, exceeding industry averages, according to the group, which reiterated its commitment to continue adopting a sustainable development strategy by expanding production capacities to enhance global food security.
OCP also mentioned a renewed emphasis on strategic investments in key areas like water management and renewable energy.
Earlier this month, OCP announced that it received €100 million from the International Finance Corporation (IFC), with the aim of launching an initiative to address water scarcity and improving food insecurity in Africa.
The project involves the construction of a 219-kilometer pipeline that will transport desalinated water from the Atlantic coast to central Morocco. It aims to ensure a sustainable water supply for both OCP’s operations and local communities, the group said in the statement.
According to OCP, the pipeline will be powered exclusively by renewable energy by 2030, reflecting the group’s commitment to continue boosting sustainable development goals.
Key financing activities
In its statement, OCP also highlighted key financing activities the group recorded, including the $2 billion raised in international bond markets in May 2024.
The fund seeks to support OCP’s Green Investment Program aimed at expanding production capacities and investing in water and renewables.
Some of the highlights also included agreements secured by the group, including a deal with kfZ.
The agreement with the German development bank concerns a €200 million financing deal with the aim of bolstering global food security and combat climate change.
“This loan is crucial for OCP’s green investment strategy for 2023-2027, with plans to utilize 100% non-conventional water for industrial operations by 2024,” the statement said.
In terms of expansion operations, the group announced that it launched the Mzinda Meskala program, targeting capacity expansions by two key regions, including the Mzinda Safi Corridor and the Meskala-Essaouira Corridor.
The first project targets an annual capacity of 12 million tons of rock, three million tons of phosphoric acid, and 8.4 million tons of fertilizer by 2028.
As for the second project, it targets 20 million tons of rock, one million tons of phosphoric acid, and two million tons of fertilizer by 2030.
As for green energy programs, OCP announced a significant project in its solar energy project.
This project will offer 202 megawatts of capacity in Khouribga and Benguerir by 2024.
“Currently, 93% of the work is completed, including the installation of photovoltaic modules and trackers, construction of the transformer substation, and civil engineering,” the group stressed.
In its performance indicators, OCP also highlighted market conditions, noting that the situation has been characterized by limited supply – with Chinese exports falling short of expectations.
Demand in major fertilizers importing regions showed low stock levels, except from Brazil and India, which were vigilant and adopted cautious approaches, OCP said.
The factors caused stable phosphate fertilizer prices in early 2024, followed by a decline from March before recovering in late May, the group said, stressing that it has successfully met the growing demand for specialized products.
