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.
“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.
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.