OCP Reports Strong $9 Billion Turnover Amid Market Volatility
In a demonstration of its resilience and strategic foresight, Morocco's leading fertilizer producer, OCP, has announced a robust turnover of $9 billion (MAD 91.27 billion) for the fiscal year 2023. Despite grappling with challenges stemming from fluctuating fertilizer prices, the company's performance underscores its adeptness in managing market uncertainties while leveraging global demand.
Fertilizers remained the cornerstone of OCP's operations, contributing significantly with 66% to the company's overall turnover. This notable achievement is credited to the sustained demand from key markets such as Brazil, South America, and Africa, where OCP's products continue to be highly sought after.
Although the previous fiscal year saw a record turnover of $11.3 billion (MAD 114.57 billion), the decline in fertilizer export prices in 2023 resulted in an 18% decrease in local currency terms. However, OCP's strategic response, coupled with an increase in exported quantities, helped mitigate the impact of this downturn, particularly evident in the latter half of the year.
Mostafa Terrab, OCP's Chief Executive Officer, expressed satisfaction with the company's performance, emphasizing its resilience amidst market volatility. He highlighted the pivotal role played by strong fourth-quarter results in achieving a robust annual performance, despite challenging market conditions characterized by a noticeable decline in prices compared to the preceding year.
Terrab further explained that the normalization of price levels facilitated an uptick in demand in major importing regions, leading to a remarkable 43% increase in revenues during the second half of 2023 compared to the first half. Notably, OCP's raw profit before interest, tax, and consumption witnessed an almost three-fold increase during this period.
While revenues from raw metal and phosphoric acid experienced declines of 18% and 40%, respectively, in local currency terms due to price normalization, OCP's strategic emphasis on increasing exported quantities in the latter half of the year helped offset this impact. Importantly, the company's performance exceeded that of 2021, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reaching $2.9 billion (MAD 29.39 billion) in 2023, albeit lower than the previous year.
Reaffirming its commitment to sustainable growth and operational excellence, OCP's investment expenditures in 2023 reached $2.6 billion (MAD 26.82 billion), marking an increase compared to the previous year. This surge in investment aligns with the company's green investment acceleration plan, positioning OCP as a leader in environmental stewardship within the industry.
With global fertilizer demand on the rise, OCP's strategic vision, operational agility, and dedication to innovation solidify its position as a formidable player in the industry, ready to seize emerging opportunities while navigating market dynamics with steadfast determination.