Ammon News - The Jordan Phosphate Mines Company (JPMC) reported a significant increase in earnings before tax (EBT) in the first half of 2022, with JOD579 million compared with JOD177.6 million in the same period in 2021.
The net profit after tax amounted to JOD371.8 million in the first half of 2022, compared to JOD90 million for the same period last year, a whopping 313 per cent increase.
The company’s chairman, Muhammad Thneibat, said that the financial statements of production and marketing reports and the results of the company’s business during the first half of 2022 showed a significant increase in the production and marketing of crude phosphate, fertiliser and phosphoric acid, in addition to a 40 per cent decrease in the mining operational costs.
On the results of the company’s business and its allied companies and subsidiaries during the reporting period, Thneibat said that the report showed a significant improvement in most items of the income statement compared to the same period last year.
He added that the company’s sales during the reporting period amounted to JOD885.4 million, compared to JOD405.4 million for the same period last year, a 118 per cent increase, noting that the ratio of cost of sales to sales in the first half of this year decreased by 18 per cent compared to the same period last year.
In relation to the group’s balance sheet figures, Thneibat said that the report showed a significant improvement in its results for the end of the first half of this year, compared to the end of last year.
The company’s total net assets increased by JOD223,000, a 14.8 per cent improvement. The company’s indebtedness decreased at the end of the first half of this year, compared to the end of last year, by JOD12.5 million, a 19 per cent decrease.
He added that the value of property rights increased by JOD206.8 million, an improvement of 22.2 per cent after distributing profits.
He added that the net cash and cash equivalents increased by JOD308.7 million, an improvement of 600 per cent, compared to the same period in 2021, after it was recorded in the first half of 2022 at JOD360.1 million, compared to JOD51.4 million for the same period last year.
Thneibat noted that production of raw phosphate during the reporting period amounted, according to the report, to more than 5.4 million tons, compared to 4.494 million tons for the same period last year, a 23 per cent improvement rate.
With regard to the raw phosphate sold in the first half of this year, he said that it amounted to 5.43 million tons, compared to 4.357 million tons for the same period last year, a 24 per cent increase.
He indicated that the quantities sold of DAP fertiliser during the first half of this year amounted to 304,000 tons, while the quantities sold of aluminium fluoride during the first half of this year amounted to 5,344 tons, compared to 5,156 tons for the same period last year, an increase of 3.6 per cent.
He highlighted that the report showed an improvement in sectors, subsidiaries and allied companies, represented by an increase in the profits of the phosphate unit in the first half of 2022 at JOD314.5 million, compared to JOD84.18 million for the same period last year, a 274 per cent improvement rate.
He explained that the profits of the fertiliser unit In the company amounted to JOD59.436 million, compared to JOD16.914 million for the same period last year, a 251 per cent improvement.
Thneibat noted that the profits of the Indo-Jordanian Chemicals Company (IJC), wholly owned by the Phosphate Mines Company, increased in the reporting period, recording a total of JOD68.77 million, compared to JOD15.58 million for the same period last year, a 341 per cent improvement rate.
The Japanese Jordanian Company (NJFC's) profits stood at JOD5.08 million, compared to JOD1.488 million for the same period last year, a 241 per cent improvement.
Abdul Wahab Al-Rawad, the company's CEO, said the results were unprecedented and that they were a reflection of the company's strategies, employees' efforts, and effective resource management across the board.
He stated that the company would continue to enter into strategic agreements with new partners and investors to increase its market share, boost the quantities sold to current markets, open new markets, and employ world-class technologies to improve, develop, and diversify production.
The CEO summarised the company's projects and plans for the first half of this year, which included increasing the storage capacity of export-bound phosphate ore warehouses in Aqaba by 500,000 tons and completing the maintenance of a small (ammonia) tank in the Aqaba industrial complex by a specialised international company.
The company's plans also included supplying Brazilian buyers with phosphate fertilisers and signing a 10-year agreement to supply an Indian group with 500,000 tons of Jordanian phosphate.
Al-Rawad cited an increase in exports of phosphate and phosphoric acid to the Indian and European markets, as well as an agreement with the British SOLAR WATER company to establish and operate a seawater desalination plant utilising concentrated solar energy to meet the industrial water needs of the industrial complex in Aqaba and future projects.
He stated that the company had inked several agreements worth $1.5 billion to supply phosphate, phosphoric acid, and DAP fertiliser to several Indian companies.
The CEO noted recent discussions between the company's chairman and the Indonesian Minister of Agriculture to supply Indonesia with crude phosphate and fertilisers, as well as a memorandum of understanding to establish a plant in Aqaba to produce (NPK) with a capacity of 500,000 tons.
In addition, he stated that the firm signed a memorandum of understanding with the Munir Sukhtian Trading Group Company to establish a pure phosphoric acid plant in Aqaba, with a capacity of 20,000 tons (Food Grade or Technical Grade) for use in the food industry.
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