Rabat - The Moroccan state-owned Office Chérifien de Phosphates (OCP), the world's largest phosphate producer and a leading global fertilizer player, posted an 11.7 per cent fall in 2014 net profit to 7.74 billion dirhams ($790 million).
OCP announced that fourth quarter revenues increased 20% year over year to US$ 1.2 billion. Full year revenues grew 6% year over year to US$ 4.9 billion.
Fourth quarter Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased to US$ 321 million from US$ 139 million in the year-ago period. Full year EBITDA rose 16% year over year to US$ 1.4 billion.
The increase in EBITDA was primarily driven by higher revenues, OCP said in its 2014's fourth quarter and full year results published on Wednesday.
Raw material costs increased due to higher volumes of sulfur and ammonia, and the increased price of sulfur.
Other operating income increased primarily due to higher realized exchange rate gains on account of receivables denominated in foreign currencies.
Cash flow related to operating activities increased 34% year over year to US$ 1.0 billion in 2014, while investment program initiated by OCP in 2008 proceeded according to plan, with US$ 2.3 billion spent in 2014.
OCP said "fertilizer production will reach 10 million tons in two years which would make the company the world's top producer," Reuters reported. Fertilizers revenues rose due to higher sales volumes.
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