“2021 is a year of record results and significant achievements for OCP, marked by an excellent performance in the fourth quarter. The gradual increase in prices throughout the year, combined with our ability to meet demand across the entire value chain, has enabled a 50% increase in our turnover and a 94% increase EBITDA, driven by efficient production that more than offset the impact of rising input costs.” These remarks come from Mostafa Terrab, CEO of the OCP group, quoted in a press release issued this Thursday, March 24 on the occasion of the publication of the 2021 annual results.
Record results achieved in a particular context, marked by a positive price dynamic which continued in 2021, with phosphate fertilizer prices reaching their highest level for several years, mainly supported by strong demand combined with a restricted supply.
Demand in most importing regions was driven by higher crop prices, reflecting farmers’ good financial health and low inventory levels in key markets.
Thanks to its commercial agility, industrial flexibility and efficient production, which more than offset the impact of rising input costs, OCP Group responded effectively to changes in demand. Thus, OCP has increased its sales of specialty products, totaling 34% of fertilizer exports in 2021.
The turnover of the OCP group shows a significant increase compared to 2020, to reach 84.3 billion dirhams. This performance is mainly due to sustained demand in the main importing regions and higher prices for all product categories (Rock, Fertilizer and Acid).
The optimization of the group’s operational performance and the increase in selling prices partly neutralized the increase in raw material prices (ammonia and sulphur), and resulted in a 94% increase in EBITDA at the end of 2021 , with a strong growth in EBITDA margin of 43%.
On June 23, 2021, the OCP Group successfully issued an international bond loan of 1.5 billion dollars, an operation which was accompanied by the partial redemption of the bond loans of 2014 and 2015 for respectively 517 and 444 million dollars. .
The Group also announced the start of its capacity expansion program with the aim of bringing three million tonnes of additional capacity in 2023 and intends to continue its investments in environmental and social programs in order to maintain its leadership and guarantee its impact. positive on global food security.
These exceptional performances prompted the Board of Directors of the OCP group, meeting on March 15, 2022, to propose the distribution of 8.1 billion dirhams in dividends for the benefit of the State shareholder. A record never before achieved.
In addition, Morocco is facing this year a drought of a severity never known since the 1980s, the OCP group has decided to accelerate its “Water” program by deploying a series of exceptional for the year 2022.
The group will use new mobile desalination units to increase its capacity and thus cover all the water needs of the fertilizer production sites in Jorf Lasfar and Safi.
As of this year, the group has also decided to stop using natural freshwater resources at its fertilizer production sites. The freed up water allocations might be redirected to strengthen the local use of drinking water in the Oum Rabii basin.
But beyond the needs of the production sites, the new solutions deployed by the Group will also supply drinking water to the towns of El Jadida and Safi.
