Arab Potash : APC Financials Q3 2023 EN

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.

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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.

6

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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