Arab Potash achieves 42.8m net profit in first half

AMMAN — The Arab Potash Company (APC) achieved a net profit of JD 42.8 million after tax, provisions and mining royalties in the first half of 2017, according to a company statement. 

Accordingly, the APC recorded a 49 per cent increase in its profit over that of the corresponding period of 2016, when its net profit stood at JD28.7 million, the company’s statement added.

APC Board Chairman Jamal Al Sarayrah said there were signs of improvement in global potash prices after potash prices had dropped to a 10-year low. 

In July, an agreement was reached between buyers in China and the major global producers, regarding potash sales price in the coming contractual period, $ 11 higher per tonne than the previous contract, Sarayrah explained. 

The increase will impact the other markets and will have a positive effect on APC's financial results in the second half of this year, he added.

He indicated that APC achieved considerable improvement in terms of production costs per tonne, as these dropped by 22 per cent in the first half of this year compared to the same period last year. 

Reduced costs were the outcome of an increased production volume, efficiency in cost management, and energy saving solutions implemented at the company, according to the statement. 

Sarayrah also highlighted a “noticeable” increase in the expected payments to the national treasury compared to last year due to the company’s improved financial performance.