February 17, 2012

Jordan's Arab Potash 2011 earnings up 84%

Jordan's Arab Potash Company announced Thursday (Feb 16) its 2011 net profits surged 84% to JOD299 million (US$421 million), driven by robust prices due to higher fertiliser demand.

The firm's shareholders' report showed a 28.8% rise in net operating income to JOD720 million (US$1014 million) in 2011 from JOD559 million (US$787 million) the previous year.

Company sources say potash prices have risen due to higher grain prices that have led to increased fertiliser demand, allowing world fertiliser firms to raise prices on nitrogen, phosphate and potash.

Potash Corp of Saskatchewan, the world's largest producer of potash, owns a 27.9% share in Arab Potash. Several Arab states, including Saudi Arabia and Kuwait, have minority holdings.

Total sales rose 7.56% in 2011 to 2.24 million tonnes. Earlier last year the firm said it had signed a JOD$200-million (US$281-million) contract with Indian Potash Ltd to ship 375,000 tonnes until mid 2012.

The company's major markets are India and China. It said last year it signed a JOD$145-million (US$204-million) deal with one of China's biggest fertiliser importers Sinofert Holdings to supply the Chinese market with 300,000 tonnes of potash.

Last year also saw a 16% rise in the firm's production of potash to 2.258 million tonnes from around 1.9 million tonnes in 2011, helped by the completion of expansion projects in its Dead Sea plants.

Officials say the company's performance has recovered since a fall in profits after the economic crisis in 2009, citing continued steady demand, especially in India and China.