OCP Group SA, Casablanca, reported a 117% rise in EBITDA to MAD11.6 billion in the first quarter ended March 31, 2022, on revenues of MAD25.33 billion. This compares to the year-ago MAD5.34 billion and MAD14.29 billion, respectively. Revenues were up 77% year-over-year.
In U.S. dollars, EBITDA also more than doubled, to $1.23 billion, up from $596 million, while revenues grew by 68% to $2.67 billion from $1.59 billion the previous year.
OCP attributed what it described as the “record results” to the strong market conditions, as well as operating efficiencies. It said the Russia-Ukraine conflict has exacerbated the tight supply/demand situation in the phosphate market and has pushed prices even higher.
The group also noted that phosphate price increases have been supported by rising raw materials prices, particularly ammonia and sulfur.
OCP said the first-quarter revenue growth reflected higher year-over-year selling prices across all product categories, which more than offset lower volumes. It did not report sales volumes for the period.
The group’s capital expenditure in the quarter totaled MAD2.99 billion, a 71% increase over the same prior-year MAD1.75 billion. In dollar terms, capex increased by 61%, to $315 million versus the year-ago $196 million.
Looking ahead to the rest of the year, OCP said the strong first-quarter performance supports the group’s positive outlook for full-year 2022.
Robust market conditions, representing underlying global demand, as well as tight supply conditions and rising raw material prices, are expected to continue to support high prices, it said.
OCP expects to increase volumes in 2022 by approximately 10% “to serve customers in high growth markets where it has established leading share positions.”