Morocco’s OCP Group SA on Sept. 27 reported an 82% slump in EBITDA for the second quarter ending June 30, 2023, to MAD2.99 billion ($297 million), down from last year’s MAD16.48 billion ($1.67 billion).
Revenue was down 37% year-over-year, to MAD19.28 billion ($1.92 billion) from MAD30.69 billion ($3.09 billion). Revenue was in line with the group’s preliminary results released at the end of August (GM Sept. 1, p. 25).
Six-month EBITDA declined 73%, to MAD7.67 billion ($752 million) from the year-ago MAD28.08 billion ($2.89 billion), while six-month revenue fell by 33%, to MAD37.56 billion ($3.70 billion) from MAD56.02 billion ($5.76 billion).
OCP Group Chairman and CEO Mostafa Terrab cited several factors for the downturn, including a significant decrease in prices across the group’s product portfolio following the exceptional conditions of 2022. Terrab also said delayed purchases impacted sales, particularly for phosphate rock and phosphoric acid.
OCP’s fertilizer revenues for the first half of the year were 27% lower in local currency compared with the same prior-year period. The group said lower fertilizer prices were partially offset by increased export volumes, sustained by improved global demand in contrast to the first half of 2022.
Six-month fertilizer sales were 4% lower year-over-year, at 4.3 million mt from the year-ago 4.5 million mt. Six-month revenues for the group’s phosphate rock segment declined 38%, while phosphoric acid revenues fell 61% year-over-year when measured in local currency.
Regarding the third quarter to date, Terrab said improved pricing amid stronger demand has resulted in a sequential pick-up in the group’s performance compared to the second quarter.
“In several importing regions the low stock-to-use ratios, reduced fertilizer application due to the exceptionally high prices in 2022, together with improved affordability for farmers indicates a sustained uptick in demand as we progress into the fourth quarter, building upon the recovery experienced in the third quarter,” he said.
OCP suffered no damage to any of its facilities or mining operations from the earthquake that hit the mountainous Al Haouz province of Morocco on Sept. 8, killing approximately 3,000 people and injuring at least 5,530 more (GM Sept. 15, p. 1). OCP also suffered virtually no disruption to production, and all personnel at the group’s facilities were reported safe.
Revenue by Product (US$ million)
| Product | 1H-2023 | 1H-2022 | % change |
| Phosphate Rock | 537 | 897 | (40) |
| Phosphoric Acid | 256 | 692 | (63) |
| Fertilizers | 2,555 | 3,659 | (30) |
Fertilizer Sales by Product
| Product | 1H-2023 | 1H-2022 |
| Total Fertilizer Sales (million mt) | 4.3 | 4.5 |
| TSP | 15% | 14% |
| NPS/NPK | 23% | 31% |
| DAP/MAP | 62% | 56% |