OCP Group reports $9.76 Bln earnings in 2024
Morocco’s OCP group revenues increased to $9.76 billion in 2024 from $9.02 billion posted in 2023. The growth is supported by higher export volumes and stable prices.
“OCP’s strong performance in 2024 reflected our ability to effectively navigate evolving market conditions, achieve production and operating efficiencies, and reach several key milestones related to our sustainability objectives”, said Mostafa Terrab, CEO of the state-owned phosphate group in a press release.
“Market conditions were broadly as expected, with sustained demand across most key regions. OCP’s past and ongoing investments in capacity expansion and innovation have strengthened our industrial flexibility and commercial agility, enabling the Group to consistently and efficiently meet incremental global demand”, added Mr Terrab.
Fertilizers represented 69% of OCP’s total revenues in 2024, up from 66% the previous year. Triple Super Phosphate (TSP) export volumes increased 48%, accounting for 21% of fertilizer sales, reflecting strong uptake from key regions such as Brazil and India.
OCP process-driven production efficiencies and cost optimization programs resulted in significant operating leverage, with EBITDA increasing by 33% and EBITDA margin expanding by 800-basis points on a 6% revenue increase.
OCP delivered these strong financial results while making significant progress on its sustainability agenda, most notably in water management and renewable energy. In 2024, the group desalinated 63 million cubic meters of water for use at its production facilities, enabling the group to maintain consistent operations during a drought while reducing use of natural resources.
OCP also significantly advanced its solar energy program, nearly completing Phase One and leveraging Morocco’s excellent weather conditions to further decarbonize operations.
2024 was characterized by stable prices, reflecting recovering demand. Prices remained stable throughout most of the year, including in the second half (after a slight correction at the end of the first half).
This stability was driven by strong demand from key agricultural regions such as Oceania, Europe, North America, and parts of Africa and Asia, which counterbalanced slower purchasing activity in India and Brazil.
Full-year fertilizer revenues grew by 11% in local currency, driven by higher export volumes, particularly to Europe, North America, and India. Additionally, TSP volumes increased 48% year-on-year, accounting for 21% of total fertilizer export sales, up from 15% in 2023.
This growth underscores the Group’s commitment to providing fertilizers best suited to enhance agricultural productivity and promote soil health.
Phosphoric acid revenues grew significantly, up 28% year-on-year in local currency, primarily driven by higher export volumes, reflecting strong demand in Europe and Latin America, where OCP captured incremental growth.
Conversely, phosphate rock revenue declined by 35% year-on-year in local currency, largely reflecting reduced sales volumes compared to 2023, particularly to India, where a strong stock buildup in 2023 constrained demand.
In 2024, OCP Gross profit rose to $6.30 billion, up from $4.99 billion reported in 2023, driven by strong revenue growth and lower raw material costs, particularly for ammonia.
Full-year EBITDA increased to $3.93 billion from $2.90 billion recorded the previous year. EBITDA margin expanded to 40%, reflecting the Group’s strong growth, production efficiencies, and effective cost optimization.