Casablanca –  The OCP Group, a global leader in the phosphate and fertilizer industry, has reported strong financial performance for the first half of 2024. Despite fluctuations in the global market, the Moroccan-based company saw its profits double, driven by increased export volumes and effective operational management.

By the end of June 2024, OCP’s revenue reached $4.45 billion, a 15% increase compared to $3.87 billion in the same period of 2023. This growth is largely attributed to higher export volumes, which helped counterbalance declining selling prices across its key product segments: phosphate rock, fertilizers, and phosphoric acid.

Global demand for fertilizers remained robust, and OCP benefited from this trend, particularly in Europe and Africa. Additionally, a decrease in the cost of key inputs, such as ammonia and sulfur, further boosted the Group’s financial performance.

Surging EBITDA and operational income

OCP’s EBITDA (earnings before interest, taxes, depreciation, and amortization) saw a remarkable increase, rising by 113% year-on-year to reach $1.68 billion, compared to $791 million in the same period last year. The EBITDA margin also improved significantly, rising from 20% in 2023 to 38% in 2024, underscoring the Group’s enhanced operational efficiency.

Operating income followed a similar upward trajectory, surging from $247 million in the first half of 2023 to $1.22 billion by mid-2024.

Fertilizer and phosphoric acid demand lead growth

Fertilizer sales saw a 15% increase, driven by strong export volumes despite a drop in prices. OCP was able to meet the rising demand, particularly in Europe and Africa, where fertilizers remain a critical input for agriculture.

Phosphoric acid, another key product, witnessed an even stronger performance. Revenues from phosphoric acid soared by 83%, largely due to increased exports to major markets like India and Europe, which saw growing demand for this essential input in food production.

However, OCP’s phosphate rock segment experienced a decline, with revenues dropping by 42%. This was mainly due to lower prices and weaker local sales, though exports to Asia and Europe helped mitigate some of the impact.

Strong cash flow and debt management

At the end of June, OCP’s cash reserves stood at a healthy $1.62 billion, while the Group’s net debt was approximately $8.35 billion, with a financial leverage ratio of 2.13x, down slightly from 2.32x at the end of 2023.

Strategic initiatives and sustainable growth

OCP made significant strides in its long-term strategy during the first half of 2024. The Group successfully raised $2 billion in a global bond issue, with maturities of 10 and 30 years, and secured a $206 million financing deal with KfW, Germany’s development bank, to support its sustainable growth plans.

Additionally, OCP continued expanding its production capacity in key regions of Morocco, including Mzinda-Safi and Meskala-Essaouira, as part of its long-term growth strategy. The company is also making headway in renewable energy, with 93% of the first phase of its solar energy project in Khouribga and Benguerir completed.

CEO highlights strong performance and future outlook

OCP’s CEO, Mostafa Terrab, expressed confidence in the Group’s future, highlighting its industrial and commercial flexibility. He pointed to OCP’s ability to deliver large volumes of specialized products, such as Triple Super Phosphate (TSP), which saw a 50% increase in sales, as a key factor in meeting growing global demand.

Terrab emphasized that OCP’s cost-control leadership and strategic investments will continue to strengthen the Group’s competitiveness and maintain its position as one of the highest-margin companies in the fertilizer sector.

As OCP continues to scale its operations and invest in sustainable practices, including green ammonia and hydrogen production, the Group is positioning itself to play a pivotal role in ensuring global food security while reducing its environmental footprint.