ARAB POTASH COMPANY
(PUBLIC SHAREHOLDING COMPANY)
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
30 SEPTEMBER 2023
ARAB POTASH COMPANY
(PUBLIC SHAREHOLDING COMPANY)
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
30 SEPTEMBER 2023
PAGE | |
REPORT ON THE REVIEW OF THE INTERIM CONDENSED | |
CONSOLIDATED FINANCIAL STATEMEN | 1 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 2 - 3 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME | 4 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 5 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF | |
CHANGES IN SHAREHOLDERS' EQUITY | 6 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | 7 - 8 |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 9 - 27 |
REPORT ON THE REVIEW OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE CHAIRMAN AND MEMBERS OF THE BOARD OF DIRECTORS OF ARAB POTASH COMPANY (PUBLIC SHAREHOLDING COMPANY)
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Arab Potash Company - Public Shareholding Company ("the Company") and its subsidiaries (together the "Group") as of 30 September 2023, and the related interim condensed consolidated statement of income, and the interim condensed consolidated statement of comprehensive income for the three-month and nine-month periods then ended, the interim condensed consolidated statements of changes in shareholders' equity and cash flows for the nine-month period then ended and other explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard (IAS) 34 (Interim Financial Reporting). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the independent Auditor of the Entity". A review of Interim financial statements consists of making inquiries, primarily of persons responsible for the financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 (Interim financial reporting).
For and on behalf of PricewaterhouseCoopers "Jordan"
Hazem Hanna Sababa
License No (802)
Amman - Jordan
31 October 2023
PricewaterhouseCoopers "Jordan",3rd Circle, Jabal Amman - 14 Hazza' Al Majali Street, P.O. Box 5175, Amman 11183, Jordan T: +(962) 6 500 1300, F: +(962) 6 4610880, www.pwc.com
1
ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2023 (UNAUDITED)
30 September | 31 December | ||||
Notes | 2023 | 2022 | |||
ASSETS | JD"000" | JD"000" | |||
(Unaudited) | (Audited) | ||||
Non-current assets | |||||
Property, plant and equipment | 4 | 704,484 | 633,631 | ||
Rights of use | 5 | 14,284 | 15,342 | ||
Right of use of leased asset | 2,839 | 3,356 | |||
Investment in associates | 8 | 6,749 | 5,902 | ||
Investment in joint ventures | 8 | 266,827 | 231,517 | ||
Financial assets at amortized cost | 6 | 20,458 | 20,555 | ||
Deferred tax assets | 22,629 | 22,316 | |||
Employees' housing loans | 13,808 | 13,404 | |||
Other non-current assets | 80,686 | 88,001 | |||
Financial assets at fair value through other | |||||
comprehensive income | 835 | 835 | |||
Current assets | 1,133,599 | 1,034,859 | |||
Inventories | 31,863 | 42,406 | |||
Spare parts and supplies | 55,337 | 52,725 | |||
Employees' housing loans | 2,727 | 2,738 | |||
Accounts receivable | 190,675 | 282,897 | |||
Other current assets | 9 | 42,654 | 79,130 | ||
Cash on hand and bank balances | 10 | 469,454 | 531,040 | ||
TOTAL ASSETS | 792,710 | 990,936 | |||
1,926,309 | 2,025,795 | ||||
SHAREHOLDERS' EQUITY AND LIABILITIES | |||||
SHAREHOLDERS' EQUITY | |||||
Paid in share capital | 83,318 | 83,318 | |||
Statutory reserve | 7 | 50,464 | 50,464 | ||
Voluntary reserve | 80,699 | 80,699 | |||
Fair value reserve | 178 | 178 | |||
Re-measurement of post-employment benefit | |||||
Obligations | (11,237) | (8,155) | |||
Retained earnings | 1,458,336 | 1,368,824 | |||
NET SHAREHOLDERS' EQUITY | 1,661,758 | 1,575,328 |
2
ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2023 (UNAUDITED) (CONTINUED)
30 September | 31 December | ||||
Notes | 2023 | 2022 | |||
JD"000" | JD"000" | ||||
Liabilities | (Unaudited) | (Audited) | |||
Non-current liabilities | |||||
Death and compensation fund obligations | 11 | 53,392 | 50,048 | ||
Lease liabilities | 2,489 | 3,193 | |||
Other non-current liabilities | 19,982 | 19,465 | |||
Current liabilities | 75,863 | 72,706 | |||
Lease liabilities | 893 | 893 | |||
Death and compensation fund obligations | 11 | 3,676 | 3,731 | ||
Potash mining fees due to the government of | |||||
the Hashemite Kingdom of Jordan | 43,681 | 77,133 | |||
Trade payables | 19,710 | 15,055 | |||
Income tax provision | 14 | 58,527 | 196,278 | ||
Other current liabilities | 12 | 62,201 | 84,671 | ||
TOTAL LIABILITIES | 188,688 | 377,761 | |||
264,551 | 450,467 | ||||
TOTAL SHAREHOLDERS' EQUITY AND | |||||
LIABILITIES | 1,926,309 | 2,025,795 |
________________________ | ________________________________ |
General Manager | Senior Executive Vice |
President of financial and | |
support services |
The attached notes from 1 to 18 are part of these interim condensed consolidated
financial statements.
3
ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE AND NINE-MONTHPERIOD ENDED 30 SEPTEMBER 2023 (UNAUDITED)
For the three-month period ended | For the nine-month period | |||||||||||
Notes | 30 September | ended 30 September | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
JD "000" | JD "000" | JD "000" | JD "000" | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenue from contracts with customers | 13 | 188,272 | 368,471 | 600,464 | 991,012 | |||||||
Cost of sales | (102,691) | (84,984) | (275,519) | (266,036) | ||||||||
Gross profit | 85,581 | 283,487 | 324,945 | 724,976 | ||||||||
Administrative expenses | (3,963) | (3,832) | (12,484) | (11,856) | ||||||||
Selling and distribution expenses | (6,046) | (3,814) | (15,810) | (12,117) | ||||||||
Corporate social responsibility expenses | (536) | (1,405) | (4,553) | (4,858) | ||||||||
Impairment (Loss) Reversal of non -financial assets | (1,027) | (2,358) | 879 | (3,244) | ||||||||
Potash mining fees | 1 | (10,928) | (39,777) | (43,681) | (100,371) | |||||||
Operating profit | 63,081 | 232,301 | 249,296 | 592,530 | ||||||||
Interest income | 6,706 | 3,585 | 20,053 | 7,945 | ||||||||
Finance costs | (1,146) | (1,271) | (4,170) | (4,328) | ||||||||
Other Income (Loss), net | (263) | (3,530) | 845 | (5,311) | ||||||||
Profit before the Group's share of profit from associates | ||||||||||||
and joint ventures and income taxes | 68,378 | 231,085 | 266,024 | 590,836 | ||||||||
Group's share of profit from associates and joint ventures | 8 | 12,797 | 24,367 | 57,376 | 73,967 | |||||||
Profit before income tax | 81,175 | 255,452 | 323,400 | 664,803 | ||||||||
Income tax expense | 14 | (22,317) | (74,143) | (83,916) | (187,525) | |||||||
Profit for the period | 58,858 | 181,309 | 239,484 | 477,278 | ||||||||
Earnings per share | JD / Fils | JD / Fils | JD / Fils | JD / Fils | ||||||||
Basic and diluted earnings per share for the period | 16 | 0.706 | 2.176 | 2.874 | 5.728 |
The attached notes from 1 to 18 are part of these interim condensed consolidated financial statements.
4
ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND NINE-MONTHPERIOD ENDED 30 SEPTEMBER 2023 (UNAUDITED)
For the three- month period | For the nine -month period | |||||||||||
ended 30 September | ended 30 September | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
JD "000" | JD "000" | JD "000" | JD "000" | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Profit for the period | 58,858 | 181,309 | 239,484 | 477,278 | ||||||||
Add: other comprehensive income | ||||||||||||
Items that will not be reclassified to profit or loss: | ||||||||||||
Actuarial loss from re-measurement of post-employment benefit | ||||||||||||
obligations | - | - | (4,467) | - | ||||||||
Income tax relating to these items | - | - | 1,385 | - | ||||||||
Total comprehensive income for the period | 58,858 | 181,309 | 236,402 | 477,278 |
The attached notes from 1 to 18 are part of these interim condensed consolidated financial statements.
5
ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE NINE-MONTHPERIOD ENDED 30 SEPTEMBER 2023 (UNAUDITED)
Re- | ||||||||||||||||||||
measurement | ||||||||||||||||||||
Paid in | of post- | Net | ||||||||||||||||||
Statutory | Voluntary | Fair value | employment | Retained | ||||||||||||||||
share | benefit | Shareholders' | ||||||||||||||||||
capital | reserve | reserve | reserve | obligations | Earnings | equity | ||||||||||||||
For the nine months ended | JD "000" | JD "000" | JD "000" | JD "000" | JD "000" | JD "000" | JD "000" | |||||||||||||
30 September 2023 (unaudited) | ||||||||||||||||||||
Balance at 1 January 2023 | 83,318 | 50,464 | 80,699 | 178 | (8,155) | 1,368,824 | 1,575,328 | |||||||||||||
Profit for the period | - | - | - | - | - | 239,484 | 239,484 | |||||||||||||
Other comprehensive income | - | - | - | - | (3,082) | - | (3,082) | |||||||||||||
Total comprehensive income for the period | - | - | - | - | (3,082) | 239,484 | 236,402 | |||||||||||||
Dividends distribution (Note 17) | - | - | - | - | - | (149,972) | (149,972) | |||||||||||||
Balance at 30 September 2023 | 83,318 | 50,464 | 80,699 | 178 | (11,237) | 1,458,336 | 1,661,758 | |||||||||||||
For the nine months ended | ||||||||||||||||||||
30 September 2022 (unaudited) | ||||||||||||||||||||
Balance at 1 January 2022 | 83,318 | 50,464 | 80,699 | 133 | (14,781) | 867,577 | 1,067,410 | |||||||||||||
Profit for the period | - | - | - | - | - | 477,278 | 477,278 | |||||||||||||
Other comprehensive income | - | - | - | - | - | - | - | |||||||||||||
Total comprehensive income for the period | - | - | - | - | - | 477,278 | 477,278 | |||||||||||||
Dividends distribution (Note 17) | - | - | - | - | - | (99,981) | (99,981) | |||||||||||||
Balance at 30 September 2022 | 83,318 | 50,464 | 80,699 | 133 | (14,781) | 1,244,874 | 1,444,707 |
The attached notes from 1 to 18 are part of these interim condensed consolidated financial statements.
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ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTHPERIOD ENDED 30 SEPTEMBER 2023 (UNAUDITED)
For the nine months ended | |||||
Notes | 30 September | ||||
2023 | 2022 | ||||
JD "000" | JD "000" | ||||
(Unaudited) | (Unaudited) | ||||
OPERATING ACTIVITIES | |||||
Profit for the period before income tax | 323,400 | 664,803 | |||
Adjustments for | |||||
Depreciation of property, plant and equipment | 42,001 | 39,758 | |||
Depreciation on right of use of leased asset | 517 | 506 | |||
Amortisation | 3,483 | 2,632 | |||
Interest income | (20,053) | (7,945) | |||
Finance costs | 4,170 | 4,328 | |||
Group's share of profit from associates and joint | |||||
Ventures | 8 | (57,376) | (73,967) | ||
End of service indemnity provision | (183) | (412) | |||
Potash mining fees | 43,681 | 100,371 | |||
Provision for slow moving spare parts and | |||||
Inventory | (1,564) | 517 | |||
Provision for employees' unpaid leaves | (294) | (160) | |||
Death and compensation provision | 520 | (58) | |||
Employee's legal cases compensation provision | 6,203 | 5,483 | |||
Working capital changes: | |||||
Inventories | 10,543 | (13,342) | |||
Spare parts and supplies | (1,048) | (1,676) | |||
Accounts receivable | 92,222 | (133,920) | |||
Other current assets | 3,719 | 24,831 | |||
Trade payables | 4,655 | 12,039 | |||
Other current liabilities | (22,444) | 4,746 | |||
Net cash flows generated from operating | |||||
activities before income tax, mining fees and | |||||
death and compensation fund obligations | |||||
paid | 432,152 | 628,534 | |||
Income tax paid | (220,595) | (118,123) | |||
Potash mining fees paid | (77,133) | (29,383) | |||
Death and compensation fund obligations paid | (7,381) | (4,138) | |||
Lease Payment | (893) | - | |||
Net cash flows generated from operating | |||||
activities | 126,150 | 476,890 |
7
ARAB POTASH COMPANY - PUBLIC SHAREHOLDING COMPANY
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE-MONTHPERIOD ENDED 30 SEPTEMBER 2023 (UNAUDITED) (CONTINUED)
For the nine months ended | |||||
Notes | 30 September | ||||
2023 | 2022 | ||||
JD "000" | JD "000" | ||||
(Unaudited) | (Unaudited) | ||||
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment and | |||||
acquisition of Projects in progress | 4 | (112,854) | (137,965) | ||
Dividends received from associates and joint | |||||
ventures | 59,026 | 31,468 | |||
Granted employees' housing loans | (2,551) | (2,087) | |||
Proceeds from employees housing loans | 2,158 | 2,724 | |||
Short term deposits with original maturities of more | |||||
than 3 months | 72,693 | (241,917) | |||
Interest received | 19,990 | 5,962 | |||
Net cash flows generated for (Used in) | |||||
investing activities | 38,462 | (341,815) | |||
FINANCING ACTIVITIES | |||||
Repayment of loans | - | (4,871) | |||
Payments for obligations against capital projects | - | (2,427) | |||
Interest paid | (3,981) | (4,103) | |||
Dividends paid to shareholders | (149,524) | (100,077) | |||
Net cash flows used in financing activities | (153,505) | (111,478) | |||
Net change in cash and cash equivalents | 11,107 | 23,597 | |||
Cash and cash equivalents at 1 January | 75,327 | 53,017 | |||
Cash and cash equivalents at 30 September | |||||
2023 | 10 | 86,434 | 76,614 |
The attached notes 1 to 18 form part of these interim condensed consolidated
financial statements.
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APC - Arab Potash Company plc published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 11:41:48 UTC.