AMMAN: Regional turmoil is taking a toll on International Silica Industries Company (ISIC). According to a disclosure to the Jordan Securities Commission, the company’s accumulated losses reached JD0.8 million at the end of June 30, 2015.
The losses began in 2012 when the company was in the red by JD0.1 million, increasing to JD0.2 million in 2013 and JD0.3 million in 2014. Prior to that, ISIC showed signs of regression generating lower profits that dropped from JD0.2 million in 2010 to JD0.1 million in 2011.
“Due to continued political instability in the region, the company is in a jam with a sharp and noticeable shortage in cash liquidity,” the auditor wrote in the notes clarifying the summarised interim financial statements. “The turbulence played a role in raising production costs and shipment charges, weakening sales to neighbouring countries, and causing an inventory pile up,” PricewaterhouseCoopers Jordan said in the financial review.
Noting that ISIC recently secured a JD0.2 million credit facility from a local bank to ensure cash liquidity necessary for operations, the auditor added that the company is seeking higher credit ceilings from banks in order to have the needed liquidity to maintain sustainability.
