Rabat - OCP Group, a global leader in phosphate production, has delivered a strong financial performance for the first half of 2024, highlighting its resilience amidst evolving market conditions.
The company reported a turnover of MAD 43.25 billion ($4.25 billion), marking a notable 15% increase from the same period last year.
The group’s performance underscores its ability to navigate market challenges while leveraging solid fundamentals and sustained demand for its products.
OCP achieved a turnover of MAD 23.66 billion ($2.34 billion) in the second quarter of 2024 alone, up from MAD 19.28 billion ($1.90 billion) in the same period last year.
This 23% increase reflects a significant recovery in demand across key importing regions and stable phosphate product prices, which have bolstered the company’s profitability.
OCP Group has also intensified its investment efforts in the second quarter, with capital expenditure rising to MAD 10.45 billion ($1.04 billion), a substantial increase from MAD 6.39 billion ($630.000.000 million) in the same period last year.
This investment surge highlights the group’s commitment to enhancing its sustainability initiatives and expanding production capacity, reinforcing its strategic position in the global phosphate market.
Despite a challenging financial year in 2023, where turnover dipped to MAD 91.27 billion ($9.02 billion) from MAD 114.57 billion ($11.25 billion) in 2022, OCP Group managed a significant rebound in the latter half of the year.
The decline in turnover during 2023 was primarily attributed to lower sales prices across all product categories compared to the exceptionally high prices in 2022.
The latter part of 2023 saw a gradual recovery, driven by reduced export volumes from Chinese competitors and an uptick in demand from major agricultural regions such as the United States, Europe, and Brazil.
These areas, grappling with low stock levels and favorable economic conditions for farmers, contributed to the improvement in OCP’s financial results.