OCP SA, Casablanca. reported an 18.5 percent drop in first-half net profit to MAD1.885 billion (approximately $199 million), down from the year-ago MAD2.315 billion, partly due to a rise in the cost of servicing its debt, the company said in its Sept.7 earnings report (GM Sept. 7, p. 26). The net cost of its debt increased to MAD805 million in the six-month period, up from the year-ago MAD236 million. Net debt rose to MAD44.97 billion, up from MAD42.9 billion
The group’s revenues increased 15 percent in the first half of the year to MAD26.6 billion, up from MAD23.15 billion.
Revenues by Product
| MAD million | H1 2018 | H1 2017 | % change | H1 2018 % of total |
H1 2017 % of total |
| Fertilizers | 14,917 | 12,314 | +21% | 56% | 53% |
| Phos Rock | 4,902 | 5,017 | -3% | 18% | 22% |
| Phos Acid | 4,286 | 3,669 | +17% | 16% | 16% |
| Total revenues | 26,599 | 23,152 | +15% |
OCP attributed the 21 percent year-on-year increase in fertilizer sales revenues primarily to an additional export volume (+455,000 mt), notably due to the good performance achieved by the JFC 1, 2, and 3 plants and the commissioning of JFC4 in April 2018, and an 18 percent increase in fertilizer prices (all grades combined) following the rise in commodity prices and the decline in Chinese supply following a higher local demand, combined with the closure of some capacities in North America.
The 17 percent rise in phosphoric acid sales revenues, the group said, was mainly due to a 25 percent increase in prices following the rise of sulfur prices in the international market.
With regard to its phosphate rock sales, the group noted higher volumes sold and stabilization of selling prices. OCP noted the opening of the new Béni Amir phosphate mine with production capacity of 5.5 million mt/y of “selective” phosphate in the reporting period.
Africa accounted for 25 percent of the group’s revenue (H1 2017: 18 percent) and Europe 18 percent (H1 2017: 24 percent), while North America and India each accounted for 14 percent of the total (H1 2017: 11 percent and 8 percent, respectively). Brazil accounted for 12 percent (H1 2017: 15 percent) and the rest of Latin America was 6 percent (H1 2017: no figure available) and Asia also 6 percent (H1 2017: 8 percent) of the total.
OCP saw increases of 0.6 million mt and 0.2 million mt, respectively, in its first-half 2018 fertilizer sales volumes to Asia and the Americas, respectively, while fertilizers sales volumes to Europe were down 0.3 million mt year-on-year due to weaker demand, OCP said.