The turnover of the OCP Group amounted to more than 57.64 billion dirhams for the first nine months of this year, up 38% compared to the end of September 2020, specifies the group in a statement. This performance is mainly explained by the increase in the selling prices of all product categories, offsetting the drop in exported volumes of fertilizers from one year to the next.
Over the period, rock turnover increased by 25% compared to the end of September 2020, while fertilizer turnover increased by 41%, largely offsetting the drop in volumes observed following a transition in demand to phosphoric acid. So, phosphoric acid recorded an increase in turnover of 47% thanks to prices and sales volumes in marked improvement compared to the end of September 2020.
In addition, the gross margin amounted to more than MAD 37.87 billion, reflecting the increase in selling prices and the optimization of operational performance which made it possible to largely neutralize the increase in raw material prices, namely, ammonia and sulfur.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) showed an increase of 79% year on year to reach almost MAD 24.48 billion and the EBITDA margin, in strong growth, was posted at 42%.
The operating profit amounted to MAD 17.73 billion, a significant increase compared to the MAD 4 billion achieved last year. The operating income at the end of September 2020 included a non-recurring charge of MAD 3 billion, relating to OCP’s contribution to the Special Fund for the management of the Covid-19 pandemic in the second quarter of 2020.
Phosphate fertilizers represented a share of 60% of total turnover at the end of September 2021, with an increase in the production of specialty products, totaling 37% of fertilizer exports, against 30% for the same period in 2020.
“South America accounted for 38% of the Group’s fertilizer exports, and Africa and Asia represented 21% and 18% respectively, up from the same period of the previous year,” said Mostafa Terrab, Chairman and CEO of the group.