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FINANCIAL NEWS
Jordan- Arab Potash posts 34% decline in 2012 profit
18 Feb 2013
(MENAFN) Arab Potash Company’s Chairman, Jamal al Sarayrah, stated that the Jordanian firm’s net profit declined by 34 percent in 2012 to USD280 million, reported Arabian Business.
Al Sarayrah attributed the notable drop to rising costs that resulted from higher electricity, water, fuel prices and wages, in addition to weakening global demand for potash, a main ingredient for fertilizers, which hampered production.
Arab Potash’s output in the year fell to 1.8 million tons, compared with nearly 2.2 million tons in 2011.
The company, one of the biggest producers of potash in the world, said that the decrease in profits is the first since 2009, when Arab Potash started a gradual recovery driven by strong prices driven by higher demand for fertilizer, mainly in India and China.
It is worth noting that Potash Corp of Saskatchewan, the world’s largest producer, has a 27.9-percent stake in Arab Potash, whereas a number of Arab countries own minority stakes, including Saudi Arabia and Kuwait.
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