Casablanca-based OCP Group SA reported a 60% drop in EBITDA, to MAD17.18 billion ($1.7 billion) for the nine months to Sept. 30, 2023, down from MAD42.96 billion ($4.31 billion) during the same period last year, according to a Nov. 20 earnings statement.
Nine-month revenue fell 32% year-over-year, to MAD61.04 billion ($6.03 billion) from MAD89.54 billion ($8.96 billion) last year, with OCP attributing the drop to price declines across all its product categories compared to “the exceptional price environment” of 2022.
“OCP’s nine-month results were bolstered by the group’s third-quarter performance, which represented a strong sequential rebound compared to second-quarter levels,” said OCP Group Chairman and CEO Mostafa Terrab.
He noted favorable market trends that began in August and continued through September and into the fourth quarter, reflecting “gradually increasing product prices, supported by strengthening of demand in major importing regions.”
Nine-month fertilizer revenues were 29% lower year-over-year in US dollar currency, while phosphoric acid revenues decreased by 51% and phosphate rock revenues were down by 42%. OCP attributed the downturns to lower year-over-year prices and lower export volumes to key importing regions.
However, the group said export volumes “substantially rebounded” during the third quarter, reflecting sales delays in rock and acid experienced during the first half of 2023. Fertilizer sales accounted for 69% of OCP’s 2023 nine-month revenues, up from 65% in the same prior-year period.
The group said it gained “significant traction” for its TSP product, with TSP sales volumes up 20% year-over-year, to 1.2 million mt from 1.0 million mt in last year’s nine-month period and 0.9 million mt in the first nine months of 2021.
OCP’s total nine-month fertilizer sales volumes (TSP/DAP/MAP/NPK/NPS) reached 7.7 million mt, a 7% increase from last year’s 7.2 million but down from 8 million mt in 2021.
OCP said the first of three new fertilizer production lines at Jorf Lasfar were completed in the second quarter and it is currently ramping up production of TSP. Two other lines are expected to begin operation in early 2024.
OCP Revenues by Product ($ million)
| Product | 9M-2023 | 9M-2022 | % change |
| Phosphate Rock | 847 | 1,461 | (42) |
| Phosphoric Acid | 456 | 931 | (51) |
| Fertilizers | 4,168 | 5,841 | (29) |