Morocco’s OCP posts 72% rise in first half revenue

Morocco’s phosphates and fertilizers producer OCP said its revenue in the first six months rose 72% to a record 56 billion dirhams at a context of higher demand and higher prices in the international market.

Fertilizers prices rose in the first half of this year due to supply disruption resulting from the war in Ukraine and the decrease in China’s exports, OCP said in a statement.

Morocco’s trade balance continues to benefit from higher prices of phosphates and derivatives with sales up 81% to 68.7 billion dirhams by July, the foreign exchange office said.

Morocco, which has the world’s largest phosphates reserves, has positioned itself as a major fertilizer producer expanding its market share in the wake of the export restrictions imposed by other major producers such as Russia.

In these challenging supply conditions, Morocco’s OCP has offered African countries 550,000 tons of fertilizers, of which 180,000 tons took the form of a donation and 370,000 to be sold at discounted prices.

Prior to this fertilizers relief program by the OCP, which will amount to 16% of Africa’s fertilizers needs this year, Morocco made sure to dedicate 20% of its fertilizers exports to Africa although it could have shifted such quantities to Brazil or Asia where customers are willing to pay a higher price.

Besides, OCP is investing to improve the production capacities of key African countries to reduce their dependence on imports. In Nigeria and Ethiopia in particular, OCP is planning investments totaling $8 bln to build giant factories that will supply local and regional markets.