The profits of Misr Fertilizer Production Company “Mopco” increased by 37% during the past year to reach 1.14 billion pounds, compared to a net profit of 830.4 million pounds during the previous year 2019, taking into account the rights of the minority shareholders.
The company’s revenues increased during the past year 2019 to reach 2.63 billion pounds, compared to total sales of 2.41 billion pounds in the previous year.
The company stated that most of the increase in its independent profits during 2020 is represented by a decrease of 380 million pounds in the translation differences of foreign currencies in 2020.
The extraordinary general assembly of Misr Fertilizers Production Company “MOPCO” approved the amendment of 8 articles to the company’s articles of association.
And the General approved the amendment of articles (4-7-21-25-29-46-48-55).
Each of the ministries of Petroleum and Finance, under the supervision of the Ministerial Committee for Settlement of Investment Contracts Disputes in the Council of Ministers, concluded an agreement to settle the disputes between the Canadian Neutrin Company, formerly Agrium, and its subsidiaries, and the government represented by companies in which the Ministries of Petroleum and Mineral Resources contribute directly.
MOPCO disclosed to the Egyptian Stock Exchange that Agrium Egypt has sold 59.573 million shares of MOPCO with a total value of EGP 2.9 billion, in addition to Beltone Securities Brokerage acting as the deal’s broker.
Sources close to the consultations said that Neutrin had demanded in its arbitration cases amounts worth $ 1.8 billion, which was reduced to $ 540 million, and Beltone Securities Brokerage also acted as a broker for the buyer and seller.
The sources added that the value includes the purchase of the 26% stake, as well as the settlement of arbitration claims and the waiver of the filed cases.
The company had disclosed in a statement two weeks ago that the total proceeds from the sale of shares and the settlements that will take place will amount to $ 540 million, and that it expects to receive it in full before the end of December.
It added that its investment in MOPCO contributed to its annual earnings before deducting interest, taxes, depreciation and amortization with gains ranging between 15 and 20 million dollars over the investment period.
The settlement agreement included an end to the investment arbitration lawsuit filed against the Arab Republic of Egypt at the Permanent Court of Arbitration in The Hague, as well as the commercial arbitration lawsuit filed against the Egyptian Company for Nitrogen Products, which is being considered before the International Chamber of Commerce in Paris, in return for the agreement to transfer ownership of the share of the company “Neutrine”, which represents 59.57 million shares Equivalent to 26% of the total shares of the Misr Fertilizer Production Company “MOPCO” to the Ministry of Finance, according to a negotiated price agreed upon between the parties, taking into account the average market prices in the period preceding the signing of this agreement.
The Mobco-Agrium crisis dates back to about 10 years ago when Damietta Governorate refused to open an agrium plant for the production of fertilizers, amid fears of its environmental impacts on the tourist city of Ras El-Bar, overlooking the Mediterranean.
The ownership structure of MOPCO includes the Egyptian Holding Company for Petrochemicals by 30.57%, the Canadian Neutrin Company (formerly Agrium) by 26%, next to the National Investment Bank by 12.8%, the Egyptian Holding Company for Natural Gas by 7.6%, and the Egyptian Natural Gas Company by 5.7%, in addition to minority shares for each From Arabia for Petroleum Investments, Nasser Bank, National Bank, Misr Property Insurance Company and Misr Insurance.
The profits of Misr Fertilizer Production Company – MOPCO increased by 34% during the first 9 months of 2020, achieving a net profit of 1.68 billion pounds during the period from January to September 2020, compared to 1.25 billion pounds during the comparative period from 2019.
The company’s sales declined during the period to 5.47 billion pounds, compared to revenues of 6.21 billion pounds in the comparative period of 2019, and the company attributed the increase in consolidated profits to a decrease in financing costs, amounting to 577 million pounds, compared to the same period in 2019.
The article “MOPCO” profits 1.14 billion pounds during 2020, with a growth of 37%. It was written in Al-Borsa newspaper.