Morocco-OCP-Economy

Phosphates group’s revenues up 77% in Q1 2022

APA - Rabat (Morocco)

The OCP group recorded a turnover of nearly 2.39 billion euros (25.33 billion dirhams) in the first quarter of 2022, up 77 percent compared to that achieved a year earlier, the Office chérifien des Phosphates said on Tuesday.

This performance is due to the increase in sales prices in all product categories, which has largely offset the decline in sales volumes, said OCP in a statement on its results in Q1-2022.

“The record results posted by OCP in 2021 continued in Q1 2022, driven by strong market conditions and sustained operational efficiency. The Russian-Ukrainian conflict intensified the tense supply/demand balance situation in the phosphate market and led to a further increase in prices, which was also supported by rising raw material costs, in particular, ammonia and sulfur,” the group said.

The gross margin stood, meanwhile, at €1.5 billion (15.88 MMDH), against €875 million (9.267 MMDH) a year earlier, the increase in sales prices having neutralized the impact of rising costs of inputs, mainly sulfur and ammonia, the statement said, noting that the gross margin rate reached 63 percent against 65 percent in the first quarter of 2021.

Over the same period, capital expenditure has evolved by 70.7 percent, adds OCP, which expects significant growth in 2022. “The price increase should continue over the year, supported by strong market conditions, reflecting strong global demand, a tight supply situation and rising commodity prices,” notes the group. Under these conditions, the Board expects to increase its production volumes by 10 percent this year to meet the demand of high-growth markets.


HA/fss/GIK/APA

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