APC General Assembly Distributes Cash Dividend of JD 83.3, equal to 100% of Capital less for 2016

APC and Subsidiaries and Affiliates Boost Foreign Currency Reserves by about US $ 730 M in 2016

APC Pays JD 38 M to Treasury, JD 61 M Employees' Salaries & Benefits, and JD 8 M to support Local Communities

Amman April 20, 2017: The General Assembly of the Arab Potash Company (APC) held its 56 ordinary meeting on Thursday, April 20, 2017 under the chairmanship of Mr. Jamal Al Sarayrah Chairman of the Board and in presence of members of the Board of Directors, Executive Management, shareholders, and a representative of the General Controller of Companies. The meeting discussed the Board's report, financial statements of the Company for 2016 and its future plans.

Commenting on the meeting's results, Mr. Al Sarayrah said that the General Assembly approved a Board of Directors' proposal to distribute a cash dividend of 100% of the capital which is equivalent to JD 83.3 million, in spite of the difficulties that faced the global potash market. Mr. Sarayrah pointed out that these dividends come mainly from the profits of subsidiary and affiliate companies which amounted to JD 45 million, in addition to non-operating revenues such as those from the settlement of outstanding court cases related to dikes and collection of dues from Jordan Safi Salt Company under liquidation. These non-operating items amounted to about JD 15 million. The rest of the dividends was credited to the company's retained earnings. The operating profit of potash sales and marketing activities reached almost a break-even point in 2016, indicating that potash sales and marketing activities were sufficient only to cover the company's operating expenses such as salaries, employee benefits and other production costs.

Commenting on the Company's results, Mr. Sarayrah said that the global potash market faced major challenges in 2016, the most grueling of which was the drop of global potash prices to the lowest level in the past ten years. This had a severe impact on APC's profitability. Profits decreased by 48% from 2015, to JD 67.4 million as consolidated net profits after royalties, taxes and provisions. As mentioned earlier, the operating profit from potash sales and marketing activities reached almost a break-even point last year.

Mr. Sarayrah pointed out that, as a result of APC's judicious policies of investment in downstream industries and the wise management of subsidiary and affiliate companies, most of the profits realized last year came from the operations of downstream industries, namely the Jordan Bromine Company (JBC) and KEMAPCO. KEMAPCO realized a net profit of JD 16.1 million, while APC's share of JBC's profits amounted to JD 29 million. In addition there were other revenues from non-recurring activities

Mr. Sarayrah also pointed out that, despite the low profits realized by APC in the past year, its payments to the Treasury amounted to about JD 38 million.

The Chairman focused on the future plans of the Company which include, in addition to investment in derivative industries, cutting energy costs by generating electricity from natural gas, expanding KEMAPCO's production to 175,000 tons per year, continuing construction work of the industrial port by the Jordan Industrial Ports Company, which is due for completion in 2018, and optimization of water resources by cooperating with the Ministry of Water and Irrigation and the Jordan Valley Authority to build dams for harvesting rainwater which would provide drinking water for the local population as well as water for agriculture and industry. Water projects underway or understudy include Wadi Ibn Hammad Dam, Alwadat Dam, Wadi Assal Dam and in the Jordan Valley area.

Mr. Jamal Al Sarayrah also stressed that APC would continue to strengthen its position as one of the leading companies in Jordan in social responsibility, guided by the vision of His Majesty King Abdullah II Ibn Al Hussein, that the top priority is a better life for all Jordanians. In the period 2012 - 2016, APC provided an average of about JD 9 million annually for social responsibility programs in education, health, social work, support for official bodies, water and the environment, maintenance of houses of worship, cultural activities, and supporting union activities.

President and CEO. Brent Heimann added that APC's most important priority is to provide a safe working environment for its employees. In this regard, the Company upgraded its safety procedures which enabled it to complete two million working hours without a lost time injury, which is an injury that requires the injured worker to take time off for medical treatment.

Speaking about the Company's financial results, Mr. Heimann said that last year's results are a major achievement in light of the state of the potash industry worldwide, which forced major producers to take extreme measures that included mine closures and laying off hundreds of workers to reduce costs. Mr. Heimann added that the Company continues to implement programs to manage and reduce expenses and production costs in order to face any future challenges.

The Arab Potash Company is considered one of the most important national companies in terms of its support for the national economy, exports, and attracting hard currency to Jordan. APC and its subsidiaries and affiliates boosted the Kingdom's foreign currency reserves in 2016 by more than US $ 730 million.

APC - Arab Potash Company published this content on 20 April 2017 and is solely responsible for the information contained herein.
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