The OCP Group, a global leader in phosphate fertilizers, has released its results for the first half of 2026, showcasing a resilient performance in a challenging market environment. The company's EBITDA margin remained solid, driven by strategic decisions on production levels, raw material sourcing, and product mix optimization. According to the company's management, OCP's strong fundamentals and strategic decisions enabled it to navigate the difficult market conditions.
The market conditions were marked by a surge in sulfur prices and an increase in ammonia prices. However, OCP had secured sulfur stocks before the price hike, as mentioned during the release of its 2025 annual results in March 2026. The company also advanced part of its maintenance program to preserve operational flexibility for the rest of the year. Additionally, OCP continued to ramp up production and sales of Triple Super Phosphate (TSP), a phosphate-rich fertilizer that requires less sulfur and no ammonia.
OCP's management attributed the company's resilient performance to its cost competitiveness and industrial model flexibility. The company served a diversified global customer base and increased the share of TSP in its product mix, a more accessible solution for farmers with significant agronomic benefits. Despite a decline in global fertilizer demand due to economic accessibility issues, OCP responded to the needs of American farmers by resuming exports to the US in July and August.
On June 29, 2026, the US government suspended countervailing duties on Moroccan phosphate imports for up to eight months, citing a significant fertilizer shortage in the US. OCP's President and CEO, Mostafa Terrab, stated that the company maintained a solid margin profile throughout the first half, with an EBITDA margin of 28% in the first six months and 27% in the second quarter.
Global phosphate fertilizer prices surged in the first half of 2026, with a notable acceleration in the second quarter due to increased tensions in the Middle East. However, demand declined due to economic accessibility issues, leading to lower import volumes in key markets such as India, Europe, and Africa. The Brazilian market showed more resilience, with a relatively contained decline in import demand.
The global supply of fertilizers was constrained by the absence of Chinese phosphate exports, reduced Russian volumes in Europe, and decreased Saudi exports due to geopolitical disruptions. OCP's production was also affected by raw material constraints, particularly limited sulfur availability and exceptionally high prices. Several phosphate fertilizer producers reduced production during the period.
OCP's revenue for the first half of 2026 stood at 48,372 million dirhams, down from 52,166 million dirhams in the same period last year. The decline reflects lower sales volumes in key segments due to economic accessibility constraints in several markets. Despite this, OCP increased its sales to the Americas, leveraging its commercial agility.
Key points
- OCP maintained a solid EBITDA margin of 28% in H1 2026 despite challenging market conditions.
- The company's strategic decisions on production and raw material sourcing enabled it to navigate the difficult market environment.
- OCP increased the share of TSP in its product mix, a more accessible solution for farmers with significant agronomic benefits.
