Casablanca – OCP Group, a global leader in phosphates and fertilizers, has reported revenues of $7.12 billion by the end of September 2024, marking a significant increase from $6.29 billion during the same period in 2023. This performance underscores the group’s strong operational and financial results, driven by favorable market conditions and strategic operational efficiencies.
Robust growth across key products
The revenue growth is primarily attributed to higher export volumes across all product categories:
- Phosphate fertilizers: Revenues grew by 15% in local currency compared to the same period last year, supported by a 54% year-on-year surge in Triple Superphosphate (TSP) export volumes.
- Phosphoric acid: A standout performer, revenues for this product rose by 52%, fueled by increased export volumes to key markets, including Europe and India.
- Phosphate rock: Revenues saw a decline of 39% due to reduced domestic sales, though exports to Europe and South America posted significant gains.
Improving margins and profitability
OCP’s gross margin rose sharply to $4.59 billion, up from $3.32 billion in the same period last year. This improvement reflects strong revenue growth, declining costs for key raw materials like ammonia and sulfur, and effective cost management.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $2.78 billion for the first nine months of 2024, a 57% increase from $1.77 billion in the same period of 2023. The EBITDA margin improved to 39%, showcasing OCP’s operational strength and efficiency across its value chain.
CEO highlights strategic growth
“Our group has once again delivered strong operational and financial results, reinforcing our leadership in developing and delivering innovative products while continuously improving our efficiency,” said Mostafa Terrab, OCP’s Chairman and CEO.
“We converted a 13% increase in cumulative revenues since the start of the year into a 57% growth in EBITDA, achieving an industry-leading EBITDA margin of 39%,” he added.
Terrab also emphasized the group’s ability to navigate market dynamics, noting strong demand in Q3 coupled with stable supply conditions. He highlighted OCP’s industrial flexibility and commercial agility as key drivers of its ability to meet the evolving needs of global clients.
Expanding global presence
OCP has recorded double-digit growth in revenues from fertilizers and phosphoric acid in 2024, supported by its phosphate-rich Triple Superphosphate (TSP) product. The group continues to expand its presence in new markets, positioning itself to capitalize on increasing global demand.
OCP’s strategic ability to deliver large quantities of phosphate products on time has been pivotal in addressing additional demand from major importing regions.
Investments in sustainability
In addition to its operational achievements, OCP has made strides in sustainability. The group has secured $20.62 million in financing from the European Bank for Reconstruction and Development (EBRD) and $10.31 million from the International Finance Corporation (IFC) to enhance water sustainability through desalination projects. These initiatives will ensure the group meets growing demand while preserving freshwater resources for local communities.
A promising outlook
As 2024 progresses, OCP Group remains committed to leveraging its operational strength and market leadership to drive further growth. With continued investment in innovation and sustainability, the group is well-positioned to meet global agricultural and environmental challenges while maintaining its competitive edge in the phosphate industry.
