Morocco's OCP Plans $14 Billion Investment Strategy for 2025-2027

Thursday 24 October 2024 - 17:00

Morocco's state phosphate company OCP has announced an ambitious MAD 139 billion ($14 billion) investment plan spanning 2025 to 2027, marking a significant expansion of its operations and sustainability initiatives.

According to a recent report from the Ministry of Economy, the investment will be strategically distributed across three years: MAD 45 billion ($4.54 billion) in 2025, MAD 52 billion ($5.25 billion) in 2026, and MAD 42.15 billion ($4.25 billion) in 2027.

The company projects substantial growth for the current year, with anticipated revenue reaching MAD 102.65 billion ($10.37 billion), representing a 12% increase from 2023. Net income is expected to rise by 15% to MAD 16.5 billion ($1.66 billion), while investment achievement is projected to improve by 64% to MAD 44.8 billion ($4.52 billion).

Financial performance has already shown positive momentum, with revenue increasing by 15% to approximately MAD 43.25 billion ($4.37 billion) by June's end. Investment spending during this period surged by 64% to MAD 19.75 billion ($1.99 billion).

The company's commitment to sustainability is evident in its recent initiatives, including two new desalination plants in Jorf Lasfar and Benguerir. These facilities aim to achieve water self-sufficiency at Jorf Lasfar while providing drinking water to Safi and El Jadida.

Financial developments include a third issuance of perpetual subordinated bonds worth MAD 5 billion ($505,235) and securing a €100 million loan from IFC for solar power plant construction.

The company's robust performance is attributed to strong demand from European and African markets, sustained interest in solid acid products in Europe, and growing demand from India. As of June this year, OCP reported revenue of $4.35 billion, up from $3.8 billion in the same period last year.