Casablanca – Moroccan liquefied petroleum gas distributor Afriquia Gaz reported weaker financial results for the first quarter of 2026, as lower sales volumes and softer recovery prices weighed on the company’s revenue performance amid continued volatility in global energy markets.

The company posted consolidated revenue of approximately $223.7 million during the first three months of 2026, representing a decline of 9% compared with about $248.5 million recorded during the same period in 2025.

Afriquia Gaz said the downturn was linked to a simultaneous decrease in distributed volumes and average selling prices. The group sold slightly more than 305,000 tons of gas products during the quarter, compared with more than 316,000 tons one year earlier.

The first-quarter results reflect slower activity in Morocco’s liquefied petroleum gas (LPG) market, which continues to be influenced by fluctuations in international hydrocarbon prices, domestic demand conditions, and regulatory mechanisms affecting consumer pricing.

A key player in Morocco’s energy sector

Afriquia Gaz is one of Morocco’s largest LPG distributors and operates across the butane and propane gas segments. The company supplies households, businesses, and industrial clients through an extensive logistics and distribution network that includes storage infrastructure, filling centers, transport fleets, wholesalers, and retail distribution channels.

The company is part of the Akwa Group, one of Morocco’s major business conglomerates with interests in energy, fuel distribution, chemicals, and real estate. Afriquia Gaz has established a strong presence in both bottled and bulk gas distribution throughout the Moroccan market and plays a central role in ensuring energy supply to residential consumers, particularly in rural and semi-urban areas where butane gas remains widely used for cooking and heating.

Morocco relies heavily on imported butane gas to meet domestic demand, making companies such as Afriquia Gaz highly exposed to changes in international energy prices and shipping costs. The sector is also shaped by government policies aimed at stabilizing consumer prices through subsidy mechanisms.

Investments continue despite revenue pressure

Despite the decline in revenue, Afriquia Gaz continued investing in its operational and logistics infrastructure during the quarter. Consolidated investments reached approximately $9.2 million during the first quarter of 2026, slightly below the level recorded during the same period a year earlier.

According to the company, a substantial portion of these investments was dedicated to the acquisition and injection of new gas cylinders into the market. Expanding the cylinder fleet is considered strategically important for maintaining distribution capacity and responding to consumption needs across Morocco.

The investments also support the company’s broader efforts to strengthen supply reliability and improve operational efficiency at a time when competition within the LPG distribution market is increasing.

Rising debt levels

While Afriquia Gaz maintained its investment strategy, the company also recorded a significant increase in financial debt levels.

Consolidated net financial debt rose to approximately $203.1 million at the end of March 2026, compared with around $133.1 million one year earlier. The increase reflects financing requirements related to ongoing investments as well as working capital needs associated with the company’s operating cycle.

At the parent-company level, net financial debt climbed to approximately $86.3 million, compared with nearly $14.9 million during the same period in 2025.

The rise in debt comes as energy distributors continue adapting to changing market conditions and tighter margins. Analysts note that maintaining investment levels while managing higher financing costs could become an important challenge for companies operating in Morocco’s energy distribution sector.

Softer demand and market conditions

Industry observers say several factors contributed to the weaker first-quarter performance.

Milder winter weather conditions during the early months of 2026 reduced household demand for gas used in heating compared with the previous year, when colder temperatures supported stronger consumption levels. In addition, moderate inflation and slightly weaker domestic demand have affected overall market activity.

The LPG market in Morocco is also facing growing competitive pressure among distributors, while fluctuations in global hydrocarbon prices continue to influence procurement costs and pricing structures.

Afriquia Gaz indicated that lower recovery prices on the market were one of the main reasons behind the decline in turnover during the quarter.

Previous year performance

The weaker start to 2026 contrasts with the company’s overall performance during the 2025 financial year.

Afriquia Gaz previously reported a slight increase in consolidated net profit for 2025, with earnings reaching approximately $77.4 million, supported by higher sales volumes and improved revenue performance during parts of the year.

That growth highlighted the company’s ability to benefit from stronger market demand despite continued volatility in international energy markets.

Outlook for the rest of 2026

Looking ahead, Afriquia Gaz is expected to continue operating in a challenging environment shaped by uncertain global energy prices, competitive market dynamics, and evolving regulatory conditions.

The Moroccan government’s butane gas subsidy system continues to cushion consumers from major international price swings, but it also places pressure on distributors’ margins and financial flexibility.

Market analysts expect the company to focus on operational efficiency, logistics optimization, and infrastructure investments in order to maintain its market position. Future financial releases will provide further indications about demand trends, pricing conditions, and the effectiveness of the company’s strategy during the remainder of 2026.

As one of Morocco’s leading LPG suppliers, Afriquia Gaz remains an important indicator of broader developments in the country’s energy distribution sector, particularly as Morocco continues balancing energy affordability, market stability, and infrastructure expansion.