OCP, a leading Moroccan fertilizer group, has demonstrated resilience in the first half of 2026, maintaining a solid profitability profile despite a challenging global market. The company reported an EBITDA margin of 28% for the first six months and 27% for the second quarter. This performance was driven by strategic decisions taken in anticipation of rising prices, flexibility in its industrial operations, and optimization of its product mix.
According to Mostafa Terrab, OCP's president and CEO, the company's solid fundamentals and strategic decisions enabled it to navigate a difficult operational environment marked by a surge in sulfur and ammonia prices. OCP had secured sulfur stocks before the price hike and advanced part of its maintenance program to preserve operational flexibility. The company also ramped up production and sales of TSP, a phosphate-rich fertilizer that requires less sulfur and no ammonia.
OCP's revenue for the first half of 2026 reached 48.37 billion dirhams, down from 52.16 billion dirhams in the same period last year. This decline reflects lower sales volumes in key segments, amid economic constraints that weighed on demand in several major markets. The company's fertilizer business saw a 7% year-on-year decline in revenue, mainly due to lower export volumes, although it increased sales to the Americas, particularly Brazil.
The phosphate rock business reported a 28% year-on-year decline in revenue, driven by weaker sales volumes in the local market, while the phosphoric acid segment saw a 9% decline, primarily due to lower export volumes. OCP prioritized using available phosphoric acid for its own granulation and fertilizer production needs, given the rise in sulfur costs. In contrast, the Specialty Products & Solutions (SPS) segment showed strong resilience, with a 26% increase in revenue to 4.75 billion dirhams.
OCP's gross margin for the first half of 2026 stood at 26.36 billion dirhams, representing a 55% margin, down from 64% a year earlier. Despite unprecedented pressure on costs, the company maintained solid operational profitability, reflecting its structurally competitive cost base. The group's liquidity position remained strong, with cash and cash equivalents of 32.692 billion dirhams and a net financial debt of 115.466 billion dirhams as of June 30, 2026.
The global fertilizer market faced significant challenges in the first half of 2026, with a 22% contraction in phosphate fertilizer volumes traded, mainly due to economic accessibility constraints for farmers. OCP's ability to maintain profitability was supported by its competitive cost structure and flexible industrial model. The company's strategic decisions and operational agility allowed it to mitigate the impact of rising costs and declining demand.
Looking ahead, OCP's solid performance in the first half of 2026 positions the company to navigate the challenges of the second half. With a strong liquidity position and a focus on optimizing its operations, OCP is well-equipped to address the ongoing pressures in the global fertilizer market and capitalize on emerging opportunities.
Key points
- OCP reported an EBITDA margin of 28% for the first half of 2026, despite a challenging global market.
- The company's revenue declined by 7% year-on-year in its fertilizer business, mainly due to lower export volumes.
- OCP's Specialty Products & Solutions (SPS) segment showed strong resilience, with a 26% increase in revenue to 4.75 billion dirhams.
