Higher Volumes, Prices, Buoy OCP’s 1Q

OCP Group, Casablanca, reported a 60 percent increase in first-quarter EBITDA to MAD 5.34 billion on revenues of MAD14.29 billion, up from the year-ago MAD3.33 billion and MAD12.27 billion, respectively.

In U.S. dollar terms, EBITDA came in at $596 million, a 73 percent increase on the prior-year $345 million, while dollar-denominated revenues grew 25 percent, to $1.59 billion from $1.27 billion.

The Moroccan phosphates group cited favorable market conditions, coupled with production efficiencies and cost savings programs, as driving the results and performance boost.

It said the higher year-over-year revenues reflected higher volumes across all product categories in the quarter compared with a year-earlier, as well as improved prices in all segments. The group noted the higher product prices in the reporting period mitigated the impact of higher input costs, primarily sulfur.

“The first-quarter results represented a strong start to the year, supporting the group’s positive outlook for 2021,” said OCP. “As anticipated, pricing conditions remain favorable, reflecting increased global demand together with stable supply and rising raw material prices.”

The group reduced its capital expenditures by 18 percent to MAD1.75 billion in the first quarter, down from MAD2.13 billion a year-ago, while U.S. dollar-denominated capex was $196 million, down from $220 million.