Morocco’s OCP sees 15% revenue surge amid resilient market performance

The company’s revenue reached 43.25 billion dirhams ($4.25 billion), up from the same period last year, highlighting its robust fundamentals and strong demand for phosphate products.

This impressive growth reflects OCP’s ability to navigate market challenges while capitalising on stable phosphate prices and a notable recovery in demand from key import regions.

In the second quarter of 2024, OCP posted a revenue of 23.66 billion dirhams ($2.34 billion), a significant rise from 19.28 billion dirhams ($1.90 billion) in the same quarter of 2023, representing a 23% increase.

This upturn was largely driven by increased demand from major agricultural markets, including the United States, Europe, and Brazil, which have been facing low stock levels and favourable economic conditions for farmers.

OCP has also ramped up its investment efforts, with capital expenditures in the second quarter of 2024 reaching 10.45 billion dirhams ($1.04 billion).

This marks a substantial increase from the 6.39 billion dirhams ($630 million) invested during the same period in 2023.

The rise in investment underscores OCP’s commitment to enhancing its sustainable development initiatives and expanding its production capacity, further solidifying its strategic position in the global phosphate market.

Despite a challenging 2023, where revenue dropped from 114.57 billion dirhams ($11.25 billion) in 2022 to 91.27 billion dirhams ($9.02 billion), OCP achieved a significant rebound in the latter half of the year.

The decline in 2023 was mainly attributed to a fall in selling prices across all product categories compared to the exceptionally high prices in 2022.

However, the end of 2023 saw a gradual recovery, spurred by reduced export volumes from Chinese competitors and increasing demand in key agricultural regions.

OCP’s financial resurgence has been further buoyed by its strategic investments and market positioning, as it continues to leverage global trends in agriculture and food security.

As the company looks ahead, it remains focused on scaling its sustainable production and maintaining its leadership in the global phosphate industry, amidst ongoing market dynamics.