OCP H1 2026: sulfur costs triple as EBITDA drops 28.5%

Morocco's OCP Group, one of the world's largest phosphate fertiliser producers, reported a 28.5% drop in EBITDA to MAD 13.3 billion for the first half of 2026. The group attributed the squeeze primarily to a tripling of sulphur costs, a key input in phosphate fertiliser production, which has significantly eroded margins despite steady demand.

Alongside the cost pressure, OCP's product mix shifted further towards triple superphosphate (TSP), which now accounts for 35% of its fertiliser exports. This suggests the group is leaning on higher-value or more readily placeable product lines to offset margin compression elsewhere in its portfolio.

For fertiliser buyers and traders, a sustained rise in sulphur costs at a producer of OCP's scale signals broader upward pressure on phosphate fertiliser production costs globally, as sulphur and sulphuric acid are core inputs across the industry. Counterparties sourcing TSP or other phosphates from Morocco should watch whether OCP passes these costs through to export prices in coming quarters.

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Original note by GIDEX Group based on reporting by Fertilizer Daily. Written up by the GIDEX market desk — see how these notes are made. Not investment advice.