OCP published its results for the second quarter and first half of 2024 earlier this week: “OCP Group delivered solid financial performance in the first half of 2024, marked by double-digit growth in its key indicators. The Group capitalized on the increase in its fertilizer production capacity to meet rapidly growing demand in several strategic markets, while optimizing the efficiency of its production and operations across the entire value chain. During this period, market conditions were characterized by limited supply and sustained demand, leading to a significant decline in global inventories. In this context, OCP was able to leverage its industrial and commercial flexibility to deliver significant volumes of specialty products in a timely manner, such as TSP, which rebounded by nearly 50%, thus meeting increased demand in certain regions. These assets, combined with our leading position in cost control, strengthen OCP’s competitiveness and support some of the highest margins in the sector,” explains Mostafa Terrab, CEO of OCP Group.
Thus, in the first half of 2024, turnover stood at 43,248 MDH, up from 37,561 MDH recorded in the first half of 2023. EBITDA amounted to 16,319 MDH, showing a significant increase compared to 7,673 MDH the previous year, with an EBITDA margin of 38%, significantly higher than the 20% recorded in 2023.
Capital expenditure totaled MAD 19,753 million, compared to MAD 12,029 million in the same period in 2023. In terms of operational and financial results, phosphate fertilizer prices remained stable in the first quarter of 2024, before experiencing fluctuations in the second quarter, marked by a decline between March and May, followed by a recovery from the end of May. This increase is mainly explained by supply constraints, including lower-than-expected Chinese exports, as well as increased demand in major importing regions such as the United States, Europe and Africa. In contrast, Brazil and India adopted a more cautious approach, delaying their purchases due to uncertainties surrounding crop prices.
In the first half of 2024, OCP’s revenue stood at MAD 43,248 million, up from MAD 37,561 million recorded in the same period last year. This growth was mainly attributable to higher export volumes, which largely offset lower sales prices year-on-year. Phosphate fertilizer revenue increased by 15% in local currency compared to the same period last year. This increase was mainly due to higher export volumes, supported by robust global demand, despite lower fertilizer prices observed year-on-year. Phosphoric acid revenue increased significantly, with an 83% increase in local currency compared to the previous year, driven by higher export volumes to key markets. This performance was supported by growing demand in India and solid demand in Europe. Rock sales, meanwhile, decreased by 42% in local currency year-on-year, due to lower prices and local sales volumes.
As previously reported, in May 2024, OCP raised funds on the international bond markets for a total amount of USD 2.0 billion, consisting of two tranches with maturities of 10 and 30 years, with respective realized amounts of USD 1.25 billion and USD 750 million, with coupons of 6.75% and 7.50% respectively…
H.Z
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– 2024-09-25 17:46:27
