LONDON (ICIS)--Arab Potash Company's January-September net profit after tax, provisions, and royalties jumped 44% on the back of stronger muriate of potash (MOP) pricing, the Jordanian fertilizer producer said on Wednesday.
Company||Jan-Sept 2018||Jan-Sept 2017||Change|
|Net profit (JD)||89m||62m||44%|
|MOP sales volumes (tonnes)||1.8m||1.75m||3%|
(JD1 = $1.41; Sales of JD350 equates $494m)
- Arab Potash said stronger potash pricing around the world had contributed to improved net profit.
- Key India and China long-term import contracts, which settled at $290/tonne CFR (cost and freight), a $50/tonne and $60/tonne increase, respectively, had positively contributed.
- Plans to undertake maintenance at its Dead Sea facilities; aims to expand its operations into the Dead Sea’s Lisan region.
- “The company's plans in finding alternatives to expensive energy sources contributed in reducing production costs significantly... Production costs are among the highest when compared with other international producers, despite efforts over the past years to reduce production costs,” it said.
- Warned of potential bearish pressure on potash pricing in 2019 as additional MOP capacity comes online which could "accordingly affect APC's profit margin."