OCP Corporate

Home / OCP reports first quarter 2016 results

OCP reports first quarter 2016 results

CASABLANCA, Morocco, May 26, 2016 – OCP S.A. (“OCP” or the “Company”), a global leader in the fertilizer industry, today reported results for the first quarter ended March 31, 2016.

First Quarter 2016 Key Figures

  • First quarter revenues totaled MAD 10,337 million (US$ 1.06 billion), compared with MAD 10,912 million (US$ 1.1 billion) in the prior-year period.
  • EBITDA was MAD 2,893 million (US$ 294 million), down from MAD 3,947 million (US$ 411 million) in the first quarter of 2015.
  • EBITDA margin was 28%, compared with 36% in the year-ago quarter.
  • Adjusted operating cash flows amounted to MAD 622 million (US$ 63 million) in the first quarter of 2016.

Management Commentary

“OCP continues to report margins that are significantly ahead of the industry average thanks to our key competitive advantages, mainly cost leadership and commercial and operating flexibility. The Company’s unique access to low cost and high quality phosphate rock, our geographically diversified customer base and our industrial and commercial strategy combine to provide OCP with greater resilience to challenging market conditions. We concur with industry analysts' views that 2016 will be a year of progressive improvement, and we continue to expect second half results to outpace the first half, as demand increases within a more stable pricing environment,” said Mr. Mostafa Terrab, Chairman and Chief Executive Officer of OCP.

Operating and Financial Results

First quarter revenues decreased to MAD 10,377 million (US$ 1.06 billion) from MAD 10,912 million (US$ 1.1 billion) in the year-ago period. Higher volumes across all three segments (rock, acid and fertilizers) were more than offset by lower prices across all product classes. 

Gross margin declined to MAD 6,969 million (US$ 709 million), compared to MAD 7,381 million (US$ 769 million) in the first quarter of 2015.

OCP’s first quarter EBITDA was MAD 2,893 million (US$ 294 million) down from 3,947 million (US$ 411 million) in the year-ago period. The result was mainly impacted by lower revenues and production held as inventory, which more than offset the benefit of reduced raw material costs for both sulfur and ammonia.

First quarter operating profit decreased to MAD 2,388 million (US$ 243 million) from MAD 3,268 million (US$ 341 million) in the 1Q 2015.

Adjusted operating cash flow was MAD 622 million (US$ 63 million) in the first quarter of 2016, compared to MAD 2,167 million (US$ 226 million) in the prior-year period.

Conference Call

In compliance with its communication program, OCP does not host conference calls for the first quarter results. Regular quarterly conference calls will resume as of the second quarter of 2016. Institutional buyers, bondholders, securities analysts and market makers seeking further clarification on first quarter 2016 results are invited to contact Mrs. Ghita LARAKI, Investor Relations at g.laraki@ocpgroup.ma.

 

 


  • Share