Provisions see Jordan Phosphates Mines post a first-half loss

Jordan Phosphate Mines, one of the world’s largest phosphate suppliers, swung to a net loss of 6.7 million dinars ($9.4 mln) in the first half of the year, hit by higher fuel costs and rise in provisions to settle a labor dispute.

A copy of the financial results obtained by Reuters showed that while first-half sales rose to 328 million dinars, against 288 million in the same period last year, a rise in fuel costs and lower global prices hurt the company's bottom line.

The results showed it had allocated provisions worth 13 million dinars to cover the cost of a steep rise in employee incentives.

Last year, it posted a net profit of 6.6 million dinars for the same period.

Alongside heavy competition, labor disputes and management problems have dented its profitability in recent years.

The company, with mining rights to more than 1.4 billion tonnes of rock phosphate reserves, has expanded downstream fertilizer joint ventures with Indian and Japanese firms over the last two decades as fertilizer demand rapidly grows.

Its phosphate exports rose to 2.2 million tonnes in the first six months of 2014 against 1.8 million tonnes a year ago, a company source said.

Total assets stood at 1.16 billion dinars on June 30, from 1.11 billion dinars at end of 2013.