OCP Group Reports Historic Loss of 2.8 Billion Dirhams in First Half of 2026

The OCP Group has reported its first half 2026 consolidated financial results, revealing a sharp deterioration in performance across key metrics. The phosphate producer posted a group share net loss of 2.84 billion dirhams for the six-month period ending June 30, contrasting starkly with the 8.25 billion dirham profit achieved in the first half of 2025.

Revenue and Profitability Decline

Ordinary activity revenues totaled 48.37 billion dirhams, down 7.3% from 52.17 billion dirhams recorded in the same period last year. This revenue contraction was accompanied by a more pronounced decline in profitability measures.

The company's EBITDA fell to 13.31 billion dirhams from 18.61 billion dirhams year-over-year, representing a significant 28.5% decrease. This compression in operating margins indicates challenges beyond simple revenue declines, pointing to potential cost pressures or unfavorable product mix shifts.

Operating Performance Under Pressure

Recurring operating income dropped from 15.74 billion dirhams to 6.81 billion dirhams. The decline was partially driven by a substantial increase in depreciation and impairment losses, which surged to 6.49 billion dirhams compared to just 2.87 billion dirhams in the prior year period.

After accounting for non-recurring items, total operating income settled at 4.76 billion dirhams, down sharply from 13.01 billion dirhams in the first half of 2025.

Financial Results Deteriorate

The financial result line revealed perhaps the most dramatic shift, swinging from a 2.85 billion dirham gain to a 4.83 billion dirham loss. This substantial deterioration stems from two primary factors:

• Foreign exchange losses: Currency impacts on financial debts and receivables generated a negative 1.23 billion dirhams, reversing a positive 4.83 billion dirham contribution from the previous year
• Higher financing costs: Net debt servicing expenses increased to 3.30 billion dirhams from 1.92 billion dirhams

The consolidated net result for the period came in at negative 2.55 billion dirhams, compared to a positive 8.61 billion dirhams profit previously. The group's attributable share of this loss reached 2.84 billion dirhams.

Cash Flow and Investment Activity

Despite the profit decline, OCP maintained positive operating cash generation. Operating activity cash flows amounted to 6.72 billion dirhams, slightly exceeding the 6.11 billion dirhams generated in the first half of 2025.

Capital expenditures on tangible and intangible assets totaled 16.07 billion dirhams, up from 15.16 billion dirhams year-over-year, reflecting the company's continued investment program despite challenging operating conditions.

Cash and cash equivalents stood at 32.69 billion dirhams at the end of June, more than doubling from 15.56 billion dirhams at year-end 2025.

Funding Initiatives

To support its investment program, OCP executed two significant bond issuances during the semester on both international and domestic markets, raising approximately 20 billion dirhams in total.

Additionally, the group finalized a VAT receivables assignment agreement valued at 10.71 billion dirhams, with an initial tranche of 8.72 billion dirhams disbursed in June. This arrangement provides additional liquidity to support operational and investment needs.