The general assembly of the Arab Potash Company (APC) on Thursday endorsed a board of directors’ recommendation to distribute JD83.3 million in cash dividends, equaling 100 percent of the company’s capital, to shareholders.
In its virtual meeting, the general assembly also approved the board’s 2020 report and the company’s financial statements and future plans. APC Chairman Shehadeh Abu Hudeib said that despite the fallout of the coronavirus pandemic the firm managed to hit an all-time high of gross output at 2.62 million tons in 2020.
Additionally, the company’s sales of potash during the past year also soared to a record high of 2.55 million tons, which translated into a net profit of JD127 million, according to Abu Hudeib. The APC chairman also noted the company’s contribution to the Kingdom’s response to the pandemic, which amounted to JD30 million.
Chief Executive Officer of the APC Ma’en Nsour said the company managed to reduce the cost of production by 6 percent per ton, which contributed to improving profit margins and strengthened the company’s ability to cope with price volatility.
Nsour spoke about the company’s robust approach to address the impact of lower potash prices in the global market, indicating that the company’s cost-control measures helped the APC Group to post a consolidated revenue of JD456 million in 2020.
He added that most forecasts suggest a growth in demand for potash-based fertilizers in 2021, noting that demand for fertilizers reached 71 million tons in 2020.