Arab Potash Co. realizes JD 26.3 M in net profit after tax, provisions and royalties at the end of Q1 2017, 12% more than last yearشركة البوتاس العربية تحقق أرباحاً صافية بعد الضريبة والمخصصات وعوائد التعدين بلغت 26.3 مليون دينار نهاية الربع الاول من عام

Arab Potash Co. realizes JD 26.3 M in net profit after tax, provisions and royalties at the end of Q1 2017, 12% more than last year

Al Sarayrah: the increase in revenues is due to APC’s record sales volume, which compensated for low potash sale prices

 –Heimann: last year’s shock showed the importance of the company’s investment in downstream industries and cost reduction

Amman, May 1, 2017: The Arab Potash Company (APC) achieved JD 26.3 million in consolidated net profits after taxes, provisions and royalties in the first quarter of 2017 (Q1 2017), compared to JD 23.5 million in same the period last year, an increase of 12%. Chairman of the Board Mr. Jamal Al Sarayrah pointed out that the increase is mainly due to the sale of APC’s share in Jordan Magnesia Company (JORMAG) which was completed in February 2017 and recognizing non-operating profit amounting to JD 7.9 million.

Potash volume production was 557,000 tons in Q1 2017 compared to 446,000 tons in the same period of last year, a rise of 25%.  Production decreased last year due to the shutdown of the hot leach plant for two months starting in March for maintenance.

APC sales volume in Q1 of this year reached a record 603,000 tons compared to 319,000 tons in the same period of last year, an increase of 89%, and sales revenues in Q1 this year reached JD 100 million compared to JD 72 million in the same period last year,  an increase of 39%.

Mr. Jamal Al Sarayrah said that the increase in sales revenue was mainly due to a delay in signing annual contracts with China and India in 2016. Additionally, the first quarter of 2017 is benefiting from carryover sales from these same 2016 contracts with China and India. The Chairman also explained that the increase in sales revenues is mainly due to the potash sold quantities that more than offset the drop in international prices which are currently at the lowest level in 10 years.

Mr. Al-Sarayrah added that the outlook for APC’s activities is positive. All long-term indicators point to rising demand for potash, a key ingredient in fertilizers, in order to meet rising global demand for food. In addition, some indications are conducive to cautious optimism that the global potash market is starting to stabilize after the shocks of the past years. Mr. Al-Sarayrah focused on the important impact of Prime Minister Dr. Hani Al-Mulqi’s visit to APC, which reflects the Jordanian government’s efforts to support Jordan’s potash industry.

CEO Brent Heimann added that APC’s top priority is to provide a safe working environment for employees, and the start of the year witnessed an improvement in the company’s safety performance.

Mr. Heimann also commented that the shock of last year showed clearly the effectiveness of the company’s investment policy in downstream industries to diversify the product and raise added value.  Most of the profits last year and a large part of profits in the first quarter of this year were from the activities of subsidiaries and affiliates, and APC’s share from the sale of a subsidiary.  He pointed out that the company will continue to study investment in downstream industries and to focus on investing in capital projects to reduce production costs in order to meet any future challenges related to global potash prices