King Abdullah II Bin Al-Hussein

80 Pages·2010·5.02 MB·English

His Majesty
King Abdullah II Bin Al-Hussein

His Royal Highness Crown
Prince Al-Hussein Bin Abdullah II
ANNUAL REPORT 2009
ARAB POTASH COMPANY PLC
Fifty-Third Annual Report
of the Board of Directors and the Consolidated Financial Statements of the Company for
the Year Ended December 31, 2009 presented at the Ordinary Annual General Assembly
Meeting in Amman at 12:00 noon on Thursday Jumada I 1431H - April 15, 2010AD
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Contents
Board of Directors & Executive F. Affiliates
Management 1. Jordan Bromine Company (JBC)
Board Committees 2. Nippon Jordan Fertilizers Company (NJFC)
Letter from the Chairman 3. Jordan Industrial Ports Company (JIPC)
Board of Directors Report 4. Jordan Safi Salt Company (Under
Liquidation)
A. The International Potash Market
G. Consolidated Financial
1. Global Production
2. Global Demand Statements
3. Prices 1. Capital
4. Shipping 2. Property, Plant & Equipment
5. Developments in the International Markets and 3. Capital Investment Volume
Company's Main Markets 4. Inventory
6. Local and Regional Developments 5. Investments
7. Company's International Promotional Activities 6. Loans
7. Revenues
B. Company Activities 8. Gross Cost
9. Profits
1. Production
10. Shareholders’ Equity
2. Sales and Marketing
11. External Audit Fees
12. Internal Audit Fees
C. The Company’s Projects
13. Legal Fees
1. Production Expansion Project No. 1
14. The Company Depending on Local or
2. New Intake Pumping Station Project at the Dead Sea
Foreign Suppliers

D. Administrative Affairs
H. Financial Indicators
1. Board of Directors
2. Executive Management
I. Future plan
3. Employees, Training and Housing
4. Organizational Charts
5. Information Technology J. Regulatory affirmation
6. Social Responsibility
7. Governance
K. Declaration of the Board of
8. International Quality Standards (ISO)
Directors
E. Subsidiaries
L. Recommendations
1. Jordan Magnesia Company (JORMAG)
2. Arab Fertilizers and Chemicals Industries (KEMAPCO)
3. Jordan Dead Sea Industries Company
(JODICO)
4. Numiera Mixed Salts & Mud Company
5. Addresses of Subsidiaries Companies
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Board of Directors and Executive Management
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Committees Membership
Government of the Hashemite Kingdom of Jordan (Ministry of Finance)
H.E. Dr. ‘Moh’d Naser’ Salem Moh’d Abu Hammour Chairman of the Board of Directors until 14/12/2009 1,2,3,4,6
H.E. Dr. Nabih Ahmed Mahmoud Salameh Chairman of the Board of Directors since 11/1/2010 1,2,3,4,5,6
H.E. Mr. Eyad Jamal Ahmed Al-Qdah Member 1,2,3,4
H.E. Mr. Moh’d Nour Abdul-Majid Ali Al-Shreideh Member 1,2,3,4,5,6
Potash Corporation of Saskatchewan (PCS)
Eng. James Francis Dietz Member 1
Eng. Garth William Moore Member 2,3
Thamer Ahmed Abdul-Majid Obaidat Member 2,5
Arab Mining Company
Mr. Mansour Bin Sulaiman Bin Ibrahim Al-Mebrek Deputy Chairman
Eng. Adnan Ahmed Rashed Al-Rashdan Member
Islamic Development Bank - Jeddah
Mr. Hisham Ibrahim Rashid Al-Shaar Member 1
The Government of Iraq
Eng. Abdul Wadoud Abdul Sattar Mahmoud
Member
Al-Dulaimi
Libyan Arab Foreign Investment Company
Dr. Abdullah Ashour Abdullah Al-Mansouri Member since
Kuwait Investment Authority
Mr. Abdullah Hasan Mshari Al-Bader Member
General Manager
Eng. Michael Terence Hogan General Manager until 14/1/2010 1,2,3,4
Eng. William Keith Thornton General Manager since 15/1/2010 1,2,3,4
Deputies of the General Manager
Eng. Gary Wayne Phillips Deputy General Manager-Technical
Deputy General Manager – Finance until
Mr. William Lawrence Flahr
25/6/2009
Mrs. Julie Ann Fortunato Deputy General Manager – Finance since 1/8/2009
Eng. Ja’far Moh’d Hafeth Salem Deputy General Manager – Marketing
Deputy General Manager – Human Resources since
Mr. Ra’ed Zakaria Farid Daoud
5/7/2009
Auditors
Ernst & Young Member of Ernst & Young International
Board Committees
1. Investments Committee 2. Finance & Administrative Committee 3. Tenders Committee
4. Dikes Committee 5. Audit Committee 6. Donations Committee
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Letter from the Chairman
In The Name of GOD Most Gracious, Most Merciful
Dear shareholders,
May peace, grace and GOD’s blessings be upon you.
The Members of the Board, Executive Management and I are pleased to have you at this Ordinary
Annual Meeting of the General Assembly for the year 2009 and to present to you the fifty-third
Annual Report on the Company’s performance, which includes the Consolidated Financial
Statements as at December 31, 2009 as well as a summary of the accomplishments realized during
the year.
The world economic crisis led to uncertainty on the part of buyers of fertilizers in general and
potash in particular. As a result, world production of potash in 2009 reached about 34.1 million
tons; a decline of approximately 34.3 percent in comparison with the year 2008. This decrease
was unprecedented and many companies implemented plans to reduce production in an effort to
control inventory levels.
In keeping with our long term strategy to match production with demand APC produced 1.1
million tons of Potash in 2009; a decrease of 44.1 percent over 2008. Potash sale volumes were
975.2 thousand tons; a decrease of 49.5 percent from last year. Realized potash prices decreased
significantly in the second half of the year.
Consolidated sales dropped to JD 373.7 million in 2009 as compared to JD 667.6 million in 2008.
Due primarily to decrease in sales quantities. Operating profits decreased by 58.2%; i.e. from JD
359.3 million to JD150.2 million.
Consequent to the decline in revenues, income tax decreased from JD 44.4 million to JD 24.5
million. Consolidated profits declined from JD 311.4 million to JD 131.8 million in 2009.
Work on implementation of the production expansion project is in progress and is expected to be
completed in the third quarter of 2010.
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The Company continues to support local communities located in proximity to the Company through
donations in kind and in cash and to provide employment opportunities for the area’s population.
In addition, the Company extends donations to support other social and environmental causes
throughout the Kingdom.
During the year, a change in the Chairmanship of the Board of Directors took place.
H.E. Dr. Mohammed Abu Hammour was honored by His Majesty by appointing him as Minister of
Finance. I thank him for his dedicated and sincere services to the Company and wish His Excellency
the best in his new office.
To conclude, I would like to extend profound thanks to the shareholders of the Company,
including the Government of Jordan and neighboring Arab Governments, Potash Corporation
of Saskatchewan Inc., Canada, Arab Mining Company, Islamic Development Bank - Jeddah and
local, regional and international financing institutions. I would like to also commend and highly
appreciate the excellent performance of the company’s employees and their sincere efforts and
extensive contribution. Thanks are also extended to our valued customers for their trust in the
Company and its products.
We pray to the Almighty to give us the power and determination to achieve our targets and
contribute more to the progress of our dear country under the strong and wise leadership of His
majesty King Abdullah Bin Al-Hussein II, May GOD Bless and Keep Him.
Chairman
Dr. Nabih Salameh
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Board of Directors Report
The Board of Directors welcomes you to this Ordinary Annual General Meeting and presents
to you the Fifty-Third Annual Report and the Consolidated Financial Statements for the year
ended December 31, 2009 in accordance with the Companies Law, Financial Securities Law
and APC by-laws.
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