In the context of an unfavorable health crisis, the OCP Group succeeded, counting on the unwavering commitment of its employees, in ensuring continuity of production, and even a record level of production over the period. Turnover thus amounted to 56,182 million dirhams, an increase of 4% compared to 2,919, and this, despite a fall in average prices from one year to the next, in the three segments – the rock, acid and fertilizers.
Communicating on its annual results, OCP indicates that “market conditions have gradually improved throughout 2020, supported by strong demand across the main importing regions”.
Indeed, adds the Group, “worldwide fertilizer imports were on the rise through our various markets, with the exception of the United States, which held high stocks at the start of the year. Thus, the prices of phosphate fertilizers, although on average lower than in 2019, experienced a gradual increase from the first quarter of 2020, and the trend continued throughout the year ”.
In terms of input costs and raw material prices, OCP was able to rely on its efficient supply strategy which was further encouraged by the drop in sulfur and ammonia prices in 2020.
Performance indicators at the end of December 2020
The indicators are green for the OCO, which thus posts a turnover of 56.2 billion dirhams (billion dirhams), against 54.1 billion dirhams at the end of December 2019, an EBITDA of 18.7 billion dirhams (15.3 billion dirhams). MMDH at the end of December 2019), an EBITDA margin of 33%, against 28% at the end of December 2019, and investment expenses of 9.6 billion MAD.
The OCP Group has benefited from its presence across five continents and its industrial flexibility to adapt its product portfolio to the demand of each region and to take full advantage of market opportunities.
It has thus increased its fertilizer exports by nearly 2.5 million tonnes compared to the same period last year, mainly directed to Latin America, Europe and India. Thus, despite the fall in average prices, the turnover of phosphate fertilizers increased by 12%.
The Group’s EBITDA grew significantly by 22% at the end of December 2020 with a solid EBITDA margin of 33%, up from the 28% posted at the end of December 2019, OCP further notes, indicating that this performance is mainly explained by the increase in turnover as well as by the operational efficiency of the Group. OCP thus consolidates its leading position in the sector, in particular thanks to the continuous improvement of its production costs resulting in margin levels above the industry average.
And to emphasize that the various management and cost reduction measures implemented by OCP in the context of Covid-19, have not only made it possible to control any negative effects linked to the pandemic but also to support the Group’s overall performance. . Most of these measures will continue post-pandemic.