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OCP Keeps Strong Margins as Global Fertilizer Market Stays Under Pressure

OCP launched 2026 with a resilient performance despite a volatile global fertilizer landscape marked by Chinese export limits and sulfur shortages. The group posted a Q1 turnover of MAD 20.1 bn and an EBITDA of MAD 5.7 bn, delivering a 28 % margin. The company credits its integrated industrial model, secured sulfur supplies and a scaling TSP program for maintaining profitability, while outlining a cautious outlook that anticipates continued supply constraints and modest demand growth.

May 29th, 2026
2 min read
By boursenews.ma

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Key Financial Highlights (Q1 2026)

OCP reported a turnover of MAD 20.1 bn, down from MAD 21.6 bn a year earlier. EBITDA reached MAD 5.7 bn, yielding a healthy 28 % margin despite the challenging market backdrop.

Global Fertilizer Market Conditions

The worldwide fertilizer market remained under pressure during the quarter. Persistent Chinese export restrictions on phosphates and limited sulfur availability kept supply tight. Geopolitical tensions in the Middle East further disrupted raw‑material flows.

Operational Resilience

OCP attributes its stable margins to three pillars:

  • Secure sulfur procurement ahead of the recent price surge.
  • High‑quality phosphate rock that underpins product performance.
  • Progressive scaling of the TSP (Tripoli‑Safi‑Port) program, which increased volumes and operational flexibility.

Capital Expenditure

Investments in Q1 totalled MAD 10.1 bn, reflecting accelerated spending on strategic industrial, water and renewable‑energy infrastructure. OCP expects a gradual normalisation of capex for the remainder of the year and plans to keep 2026 spending within the previously announced range.

Outlook

Looking ahead, OCP foresees continued structural supply constraints due to ongoing Chinese export limits, Middle‑East geopolitical risks and the scarce sulfur market. While higher prices may temper demand growth, agricultural fundamentals remain strong and crop prices stay firm, supporting overall demand.

The group will keep leveraging a diversified sourcing strategy, an integrated production platform and a flexible product portfolio to adapt to market shifts. Ongoing projects to recover pyrite and pyrrhotite—scheduled to start in early 2027—aim to lower dependence on external sulfur supplies. Exposure to ammonia remains limited, with a smaller share of global supply transiting the Strait of Hormuz.

With its cost‑effective industrial base, operational agility and strategic investments, OCP is well positioned to serve its global customer base amid persistent raw‑material volatility.

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