Rabat – Morocco’s OCP Group recorded MAD 48.37 billion ($5.02 billion) in revenue during the first half of 2026, down from MAD 52.17 billion ($5.41 billion) during the same period last year, as a sharp rise in sulfur prices and weaker global fertilizer demand put pressure on the phosphate industry.
Despite the tougher market conditions, the group maintained an EBITDA margin of 28% for the first six months, compared with 36% in the first half of 2025. EBITDA reached MAD 13.31 billion ($1.38 billion), down from MAD 18.61 billion ($1.93 billion) a year earlier.
The results reflect a significant shift in the global phosphate market. OCP said fertilizer affordability deteriorated across major importing markets, while supply constraints and geopolitical tensions pushed up the cost of key raw materials.
“Throughout the first half, OCP maintained a solid margin profile, with an EBITDA margin of 28% over the first six months and 27% in the second quarter, despite more challenging market conditions,” OCP CEO Mostafa Terrab said.
Sulfur surge puts pressure on fertilizer producers
Sulfur emerged as one of the biggest challenges for phosphate fertilizer producers during the first half of the year.
OCP said sulfur prices tripled during the period, while fertilizer prices rose by about 20%. The gap limited producers’ ability to pass higher input costs on to customers at a time when farmers already faced affordability constraints.
The pressure extended across the global industry. OCP estimates that international phosphate fertilizer trade volumes fell by about 22% during the first half of 2026.
Demand fell across several major markets, including India, Europe, and Africa. India entered the period with high inventories, which led to significant destocking, while European demand faced pressure from lower affordability and purchases made ahead of time in late 2025.
African demand also declined, largely due to Ethiopian purchases that took place in the fourth quarter of 2025. Brazil proved more resilient, with a smaller decline in import demand.
Global supply also faced constraints due to the continued absence of Chinese phosphate exports, lower Russian volumes into Europe, and reduced Saudi exports amid geopolitical disruptions.
OCP absorbs unprecedented input shock while preserving profitability
The first half of 2026 exposed the vulnerability of phosphate fertilizer producers to sharp changes in the cost of key inputs, particularly sulfur.
Geopolitical tensions in the Middle East pushed sulfur prices to exceptional levels. Fertilizer prices rose by about 20%, far below the threefold increase in sulfur costs, as farmers faced pressure on affordability.
The shock contributed to an estimated 22% decline in global phosphate fertilizer trade. In several markets, farmers postponed purchases while producers with greater exposure to imported sulfur cut capacity or temporarily halted some industrial units.
The disruption reached the mining sector as well. OCP pointed to Mosaic as an example, with the US-based producer’s phosphate capacity utilization in Brazil falling to 47% in the second quarter, compared with 84% a year earlier. Mosaic also placed its Patrocínio mine on care and maintenance, while several US facilities faced cuts or temporary shutdowns.
Mosaic’s phosphate rock production in Brazil fell from 1 million metric tons to 0.7 million metric tons, according to OCP. The figures illustrate how higher sulfur costs can affect not only producers’ margins but also the volume of fertilizer available on international markets.
Against this backdrop, OCP reported MAD 48.4 billion ($5.02 billion) in first-half revenue and MAD 13.3 billion ($1.38 billion) in EBITDA. Its EBITDA margin stood at 28% for the six-month period and 27% in the second quarter, when sulfur prices reached their highest levels.
OCP said the increase in its sulfur purchases alone exceeded the decline in EBITDA, underscoring the scale of the input-cost shock absorbed by the group.
OCP faces the shock from a different position than diversified peers
The impact of the market disruption varied across major phosphate producers, according to OCP’s analysis.
The group said EBITDA from phosphate activities declined by between 34% and 51% at Ma’aden, PhosAgro, Mosaic, and Nutrien, compared with a 26% decline for OCP in dollar terms on a comparable basis.
OCP reported a 28% EBITDA margin for the first half, compared with 22% for PhosAgro, 19% for ICL, 9% for Mosaic, and 8% for Nutrien when considering their respective phosphate activities. Ma’aden recorded a 33% margin, which OCP attributed in part to the Saudi producer’s access to domestically sourced ammonia and sulfur at preferential conditions.
In the second quarter, OCP said it maintained a 27% EBITDA margin even at the height of the sulfur price surge, a level comparable with producers that have domestic access to sulfur.
The comparison also reflects differences in business structure. Ma’aden, Nutrien, ICL, and Yara have diversified portfolios that include activities such as aluminum, gold, potash, nitrogen, and bromine. Those businesses can partly offset weaker phosphate performance at the consolidated level.
By contrast, OCP remains primarily focused on phosphate. The group therefore said its ability to absorb the shock reflects the competitiveness and structure of its business model rather than the protection offered by a diversified portfolio.
This model also helped Morocco maintain a relatively strong position in global phosphate trade. Moroccan exports of DAP, MAP, TSP, and NPS fertilizers fell 16% during the first half, compared with a 22% contraction in global phosphate fertilizer trade.
As a result, Morocco’s share of global phosphate fertilizer trade rose from about 28% to 30%, according to OCP.
The figures indicate that OCP continued to supply customers while part of the global market reduced production or withdrew volumes. The supply disruptions also underscore the exposure of parts of the global fertilizer industry to input-price shocks and the importance of reliable supply during periods of market stress.
OCP adjusts its product mix
OCP responded to the pressure on raw materials by increasing its focus on triple superphosphate, or TSP.
Unlike several other phosphate fertilizers, TSP requires substantially less sulfur and does not require ammonia. It accounted for 35% of OCP’s fertilizer export volumes in the first half of 2026, up from 26% a year earlier.
The group also secured sulfur supplies ahead of the sharp price increase and diversified its sources through new partnerships.
OCP brought part of its scheduled maintenance program forward to the second quarter, which it said helped preserve production flexibility for the remainder of the year.
A third TSP production line, with a capacity of 1 million tons, also entered service at Jorf Lasfar in July.
The shift toward TSP comes as OCP seeks to limit its exposure to the sharp increase in sulfur costs while responding to farmers’ need for more accessible fertilizer products.
Fertilizer sales decline, specialty products gain ground
OCP’s fertilizer revenue fell 7% year-on-year in local currency, mainly due to lower export volumes as demand weakened in several key markets.
The group said it increased sales to the Americas, particularly Brazil, where demand proved more resilient than in several other major markets.
Revenue from phosphate rock fell 28%, while phosphoric acid revenue declined 9%. OCP attributed the latter decline in part to a strategic decision to use more of its available phosphoric acid for its own fertilizer and granulation operations rather than export it.
Its specialty products business provided a notable counterpoint.
Revenue from Specialty Products & Solutions (SPS) rose 26% in local currency to MAD 4.76 billion ($494 million). The business focuses on higher-value products for sectors such as food processing, industry, and animal nutrition.
The performance supports OCP’s broader effort to diversify beyond conventional fertilizer products and increase its exposure to higher-value markets.
Morocco maintains strong position in global phosphate trade
OCP said Moroccan phosphate fertilizer shipments fell 16% during the first half, compared with an estimated 22% contraction in global phosphate fertilizer trade.
As a result, Morocco’s share of global phosphate fertilizer trade rose from about 28% to 30%, according to the group.
The result points to OCP’s ability to maintain exports even as weaker demand and raw material constraints forced parts of the global industry to reduce output.
The group’s integrated model, which connects phosphate mining with fertilizer production, also remains central to its response to market volatility.
OCP also regained access to the US market after Washington suspended countervailing duties on Moroccan phosphate imports on June 29 for a period of up to eight months.
The US government cited a significant fertilizer shortage in its decision.
OCP resumed fertilizer exports to the United States in July and August, allowing the group to redirect volumes toward additional demand in the American market.
Investment continues despite weaker results
OCP invested MAD 16.07 billion ($1.67 billion) during the first half of 2026, up from MAD 15.16 billion ($1.57 billion) during the same period last year.
The group said it has adjusted the timing of some projects to reflect market conditions while maintaining its broader investment strategy.
Projects related to TSP, water, energy, and Mzinda-Meskala remain part of the group’s investment program.
OCP ended June with MAD 32.69 billion ($3.40 billion) in cash and cash equivalents. Operating cash flow reached MAD 6.7 billion ($696 million), compared with MAD 6.1 billion ($633 million) a year earlier.
Net financial debt stood at MAD 115.47 billion ($12.0 billion) at the end of June, down from MAD 119.12 billion ($12.37 billion) at the end of 2025. The net debt-to-EBITDA ratio, however, rose to 3.05 times from 2.76 times at the end of last year.
OCP also cited continued access to capital markets, including a $1.5 billion international hybrid issuance that attracted more than four times the amount offered in subscriptions, alongside a MAD 5 billion ($519 million) hybrid issuance on the Moroccan market.
For the first half of 2026, OCP’s results therefore reflect both sides of an unusually difficult phosphate market: lower revenue and earnings on one hand, and a still-solid operating margin, strong liquidity, and continued investment on the other.
