"It is difficult to predict future trends in the markets and the price curve, although we are fully aware of factors affecting the balance of supply and demand.
" This was the introduction with which Mr. Abdulrahman Jawahery GPIC president, began his statement about Company achievements regarding the production and export of Urea and Ammonia.
Mr. Jawahery began his talk by addressing the changes in fertilizers and their raw materials in recent times.
He continued by outlining prosperity at the level of price and demand, of urea in particular, which is of strategic importance to the agricultural sector as it contributes to the enhancement of global food security. Petrochemical exports to subsidiary markets will no doubt continue to grow in the coming years, with China, which is the largest producer and exporter of Urea in the world, instrumental in this regard, not least because of the rapid growth in Chinese exports witnessed during the year 2010, compared to 2009, with total exports of about 3.5 million tons, highlighting the major role that China plays, while providing an accurate reflection of prevailing market conditions.
He added that the Arabian Gulf is considered one of the most important urea exporting areas, with total exports from the region running at about 10 million tons annually.
GPIC had been able to maintain its productivity rates of Urea, witnessing a rise in prices to a level exceeding 500 U.S. dollars per ton, an increase of 4% over Company predictions, through September 2011.
The Company's exports of Urea for the same period amounted to 452 thousand tons, reflecting the Company's success in fulfilling their obligations to customers, in addition to achieving its declared strategic objectives through the effective implementation of set plans which are reviewed periodically to ensure consistency and adaptability to changes in global markets.
Noteworthy in this regard is that the United States of America receives the largest share of GPIC’s total exports (about 49%.) This reflects a significant strengthening of the excellent relations already enjoyed by the Company and its US customers.
Australia's share of Company exports amounts to 18%; India takes a 10% share.
Mr. Jawahery then provided details of the Ammonia market, adding that the volume of global trade of Ammonia is about 20 million tons.
Russia, Ukraine and the Republic of Trinidad are the largest exporters of ammonia in the world and therefore play an influential role in the stability of the Ammonia market, while India is one of the largest importers of Ammonia and a strategic market for GPIC, as the Company's exports of Ammonia to India account for 41% of total exports, enabling the Company to cash in on rising prices, which have recently exceeded U.S. $ 600 per ton due to pressure of demand for this vital material.
The GPIC President, speaking on the rates of ammonia production, stated that the Company had been able to achieve an increase of 3% over planned production, as a result of the uninterrupted plant operation, bearing witness to the safety measures taken by the company, its commitment to conduct periodic maintenance of the plants on time and efficiently.
Mr. Jawahery insisted that all of these achievements would not have been possible without the continued support of the members of the board, chaired by H.E Shaikh Isa bin Ali Al Khalifa, Advisor to H.H the Prime Minister for Oil and Industrial Affairs, GPIC Chairman and the dedication of workers in the company, with their considerable efforts, teamwork and ability to bear the responsibility assigned to each individual according to his position. Further, the President praised the outstanding level of cooperation between GPIC and Petrochemical Industries in the State of Kuwait, an affiliate marketer authorized to market the Company's products of Ammonia and Urea.
This partnership has had a great impact on achieving all of these successes. Finally, Mr. Jawahery stressed the Company's determination to continue with this same approach, in an effort to achieve more and more success.