OCP reports $2.67 Bln earnings in 1st Quarter 2022

The revenues of the Moroccan state-owned phosphate group OCP reached $2.67 billion in the first quarter of 2022, up from $1.59 billion reported the same period last year.

The record results achieved by OCP in 2021 have continued in the first quarter of 2022, driven by strong market conditions and operating efficiencies, says the OCP in a press release.

“The Russia-Ukraine conflict has exacerbated the tight supply/demand situation in the phosphate market and has pushed prices even higher. Additionally, phosphate price increases have been supported by rising raw material costs, particularly ammonia and sulfur”, adds the leading global fertilizer player.

2022 first quarter revenue growth reflected higher year-over-year selling prices across all product categories, which more than offset lower volumes. Gross profit for the period amounted to $1.68 billion, ahead of $1.03 billion a year earlier, as the robust pricing environment mitigated the impact of higher input costs, mainly sulfur and ammonia. The gross profit margin remained strong at 63% compared to 65% in 1Q 2021.

OCP’s first quarter EBITDA rose by 117% year over year to reach $1.23 billion, up from $596 million in the year-ago period, thanks to significantly higher revenues and continued operating efficiencies. EBITDA margin expanded to a record 46%, compared with 37% a year earlier.

OCP’s first quarter performance represented substantial year-on-year growth and supports the Group’s positive outlook for 2022. Robust market conditions, representing underlying global demand as well as tight supply conditions and rising raw material prices are expected to continue to support high prices.

OCP expects to increase volumes in 2022 by approximately 10% to serve customers in high growth markets where it has established leading share positions.