Phosphates: Morocco’s OCP group reports $ 1.7 billion earning in 1st Quarter 2023

Morocco’s state-owned phosphate company OCP has reported $1.78 billion in first quarter of 2023 against $2.6 billion earned in the same period last year. Yet, this year’s results show the resilience of the global leader in the fertilizer industry in challenging market conditions, says the company in a press release.

Global fertilizer prices continued to decline in the first quarter of 2023, tied to a significant decrease in raw material prices as well, namely sulfur and ammonia, and reflecting reduced market demand in most regions, apart from Brazil and India. Despite improved affordability and the declining price environment, several markets were prone to delay their purchases in hope of further price drops.

OCP’s first quarter EBITDA amounted to $455 million, compared with $1.23 billion in the year-ago same period, resulting in an EBITDA margin of 26%.

Capital expenditures were $548 million in the first quarter of 2023 compared with $315 million disbursed in the similar 2022 period.

Improving demand trends support the Group’s expectations for a strong second half of 2023, driven by low inventories in certain regions, favorable farmer economics, and application season being only few months ahead.

These positive elements should be able to mitigate the impact of lower volumes in the first quarter, and together with lower raw material costs are expected to benefit margins.