All Posts from March 23, 2017

OCP EBITDA down, export volumes up 51 percent

OCP SA reported a 28 percent drop in 2016 EBITDA, to MAD12,777 million ($1.3 billion) on revenues of MAD42,471 million ($4.3 billion), down from the year-ago MAD17,659 million ($1.8 billion) and MAD47,747 million ($4.9 billion), respectively.

Fourth-quarter EBITDA came in 3 percent lower year-on-year at MAD3,607 million ($363 million) on revenues of MAD10,498 million ($1.05 billion), down from the previous year’s MAD3,737 million ($377 million) and MAD10,610 million ($1.07 billion), respectively.

“Overall demand remained healthy with higher consumption of fertilizers from farmers underpinned by lower prices. Consequently, OCP’s fertilizer export volumes significantly increased, and we further expanded our product diversification and customization,” said the Moroccan company.

Fertilizer exports sales increased by 2.2 million mt year-on year, to 6.5 million mt, up from 4.3 million mt. Of these totals, DAP/MAP/TSP exports reached 4.9 million mt in 2016, up from 3.2 million mt. Exports of new products (NPK, NP-S, micronutrients, water-soluble fertilizers and feeds) grew to 1.6 million mt from 1.1 million mt in 2015.

OCP’s exports to Africa increased 70 percent to 1.7 million mt in 2016 compared to 1 million mt in the previous year. The recovery in demand in Latin America, namely Argentina and Brazil, resulted in an increase in volumes of 900,000 mt year-on-year, OCP said.

Sales also benefited from the growth of specialty products, which increased 45 percent compared with 2015 and accounted for 25 percent of the company’s total fertilizer exports in 2016.

New company acquires Fibrant AS plant

Augusta Sulfate Co. LLC has entered into an agreement to acquire Fibrant LLC’s idled ammonium sulfate operations. The plant located in Augusta, Ga., is expected to restart May 1, 2017.

“Augusta Sulfate Co. is excited about this venture and is fully committed to reenter the market and support our dedicated ammonium sulfate customers,” said David Delaney, Augusta Sulfate chairman. “We intend to implement an investment strategy to diversify our ammonium sulfate product offering. We are equally excited about restoring approximately 100 jobs to the Augusta area.” Delaney was formerly an executive with Potash Corp. of Saskatchewan Inc. and currently is a senior advisor to Paine Schwartz Partners, formerly Paine and Partners.

“This acquisition represents a major step in re-establishing our long term historical ammonium sulfate presence here in North America,” said Ron Waller, Augusta Sulfate vice president, marketing and sales. “I cannot emphasize strongly enough the commitment of the new ownership in partnering with our customers, who have expressed their desire for a local supplier capable of delivering premium quality and service.”