OCP Group, Morocco’s fertilizer giant, reported revenues of MAD 69 billion (USD 6.9 billion) for the first nine months of 2024, 13% up from MAD 61 billion (USD 6 billion) during the same period last year, according to an earnings report.
The growth was fueled by a surge in export volumes across products, supported by favorable global market dynamics and robust operational efficiency.
The group achieved an EBITDA of MAD 27 billion (USD 2.7 billion), marking a 57% leap from MAD 17.1 billion (USD 1.7 billion) in the previous year. EBITDA refers to how a company measures profitability before tax.
The EBITDA margin climbed to 39%, surpassing last year’s 28%. Profit rose due to effective cost management, lower raw material costs for ammonia and sulfur, and enhanced production capabilities.
The strong export growth was underpinned by a rebound in demand for Triple Superphosphate (TSP), which can be used in all soil types. The growth led fertilizer revenues to jump 15% in local currency, while acid revenues soared by 52%.
Conversely, revenue from phosphate rock declined by 39% in local currency due to reduced sales volumes, though exports to Europe and South America grew substantially.
Chairman and CEO of OCP Mostafa Terrab highlighted the company’s ability to adapt to market conditions. “Our agility and industrial flexibility allowed us to meet the diverse needs of our global customer base and capitalize on incremental demand from key regions,” he said.
OCP should expect revenues to further consolidate in 2025 as persistent market pressures are likely to keep fertilizer prices high. Geopolitical tensions in key supplier regions, a strong dollar, and conflicts in the Middle East are expected to drive fertilizer price volatility.
While a shortage is not anticipated, the risks could disrupt sector stability, particularly for Brazil, which relies on imports for 85% of its fertilizer supply.
The report further highlighted the group’s green energy ambitions. The group signed a partnership with French multinational “ENGIE” to drive renewable energy projects and green hydrogen production.
In addition, loans from the European Bank for Reconstruction and Development and the International Finance Corporation will finance water security projects, including desalination facilities and a 219-kilometer water pipeline, ensuring sustainable resource management for industrial and community needs.
Looking ahead, OCP anticipates strong demand through year-end and into early 2025, supported by low global fertilizer inventories and improving affordability of nitrogen and potassium inputs.
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