APC net profit increased by 47% in first half of 2021

AMMAN — Chairman of the Arab Potash Company’s (APC) Board of Directors Shehadeh Abu Hudaib on Saturday indicated that the company’s potash mining profits doubled from JD31 million in the first six months of 2020 to JD63 million in the first six months of 2021, an increase of 102 per cent.

He also pointed to an increase in profits of affiliated companies: Jordan Bromine Company and the Arab Fertilisers and Chemical Industries Company (KEMAPCO) by 17 per cent.

According to the financial statements issued by the company, the company’s net profit after deducting taxes and mining fees for the first six months of this year increased by 47 per cent to reach JD81 million, compared to about JD55 million during the same period last year.

He added that the company is working, according to its five-year plan (2021-2025) to implement a package of production projects and expansions that will maximise shareholders’ profits and contribute to the country's overall economy. 

He indicated that this plan will ensure sustainable growth in the fertiliser industry and provide the required flexibility to respond to all changes.

The company’s contribution, including its subsidiaries and affiliated companies in the foreign exchange reserves in the Kingdom during the first six months of 2021 amounted to nearly $578 million, constituting an increase of 16 per cent in comparison with the same period last year, Abu Hudaib noted.

Maen Nsour, CEO of the company said that the potash sales increased by 6 per cent,  from 1.2 million tonnes at the end of June in 2020 to 1.4 million tonnes during the same period in 2021.

He presented a set of factors that contributed to doubling the company's profit, most notably the increase in the average selling price per tonne by 10 per cent, driven by the increase in sales of red granular potash which the company began producing in 2019, enabling it to enter new markets. 

The company’s board of directors recently discussed the implementation of the first expansion projects in the eastern region of the Kingdom, to initially increase production by 80,000 tonnes annually for the first phase, in addition to 40,000 tonnes for the second.