“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 throughout the value chain, has enabled a 50% increase in turnover and a 94% increase in EBITDA, driven by efficient production that more than compensated the impact of the increase in input costs”. These statements 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 positive price dynamics that continued in 2021, with phosphate fertilizer prices reaching their highest level in several years, mainly supported by strong demand combined with restricted supply.
Demand in most importing regions was buoyed by higher crop prices, reflecting the good financial health of farmers and low inventory levels in key markets.
Thanks to its business 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, Fertilizers and Acid).
The optimization of the group’s operating performance and the increase in sales prices partially offset the increase in the prices of raw materials (ammonia and sulfur), and resulted in an increase in EBITDA of 94% at the end of 2021, with a strong growth in the EBITDA margin of 43%.
On June 23, 2021, the OCP Group successfully issued an international bond loan for 1.5 billion dollars, an operation that was accompanied by the partial redemption of the 2014 and 2015 bond loans for 517 and 444 million dollars, respectively.
The Group also announced the start of its capacity expansion program with the objective of contributing three million tons of additional capacity in 2023 and intends to continue its investments in environmental and social programs to maintain its leadership and guarantee its positive impact on global food. security.
These exceptional results led 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 seen 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 to cover all the water needs of the fertilizer production sites at Jorf Lasfar and Safi.
Starting this year, the group has also decided to stop using natural freshwater resources at its fertilizer production sites. Released water allocations could be redirected to strengthen local use of drinking water in the Oum Rabii basin.
But beyond the needs of the production centers, the new solutions deployed by the Group will also supply drinking water to the towns of El Jadida and Safi.