Morocco's OCP Group has reported MAD 48.37 billion ($5.02 billion) in revenue for the first half of 2026, a decline from MAD 52.17 billion ($5.41 billion) during the same period last year. The decrease is attributed to a sharp rise in sulfur prices and weaker global fertilizer demand. Despite these challenges, the group maintained an EBITDA margin of 28% for the first six months, compared to 36% in the first half of 2025.
The global phosphate market experienced significant shifts during the first half of 2026. OCP noted that fertilizer affordability deteriorated across major importing markets, while supply constraints and geopolitical tensions drove up the cost of key raw materials. Sulfur prices tripled during the period, while fertilizer prices rose by about 20%. This gap limited producers' ability to pass higher input costs on to customers, particularly when farmers faced affordability constraints.
The pressure on fertilizer producers extended across the global industry, with international phosphate fertilizer trade volumes falling by about 22% during the first half of 2026. Demand declined in several major markets, including India, Europe, and Africa. India's high inventories led to significant destocking, while European demand faced pressure from lower affordability and purchases made ahead of time in late 2025. African demand also declined, largely due to Ethiopian purchases that took place in the fourth quarter of 2025.
OCP CEO Mostafa Terrab stated that the group maintained a solid margin profile, with an EBITDA margin of 28% over the first six months and 27% in the second quarter. The company absorbed an unprecedented input shock while preserving profitability. The increase in sulfur purchases alone exceeded the decline in EBITDA, underscoring the scale of the input-cost shock absorbed by the group.
The impact of the market disruption varied across major phosphate producers. OCP reported a 28% EBITDA margin for the first half, compared to 22% for PhosAgro, 19% for ICL, 9% for Mosaic, and 8% for Nutrien when considering their respective phosphate activities. Ma'aden recorded a 33% margin, which OCP attributed in part to the Saudi producer's access to domestically sourced ammonia and sulfur at preferential conditions.
OCP's business model, primarily focused on phosphate, allowed it to absorb the shock and maintain a relatively strong position in global phosphate trade. Moroccan exports of DAP, MAP, TSP, and NPS fertilizers fell 16% during the first half, compared to a 22% contraction in global phosphate fertilizer trade. As a result, Morocco's share of global phosphate fertilizer trade rose from about 28% to 30%.
In response to the pressure on raw materials, OCP adjusted its product mix by increasing its focus on triple superphosphate (TSP). Unlike several other phosphate fertilizers, TSP requires substantially less sulfur, making it a more resilient product in the face of rising sulfur prices. This strategic shift helped OCP navigate the challenging market conditions and maintain its profitability.
Key points
- OCP maintained an EBITDA margin of 28% despite a 22% decline in global phosphate fertilizer trade volumes.
- The company's revenue declined to $5.02 billion due to weaker fertilizer demand and rising sulfur prices.
- OCP's business model and focus on phosphate allowed it to maintain a relatively strong position in global phosphate trade.
