Ma’aden reports SR2.17bln profits in 1Q, 185% jump

Saudi Arabian Mining Company (Ma’aden) announced that its profits after zakat and tax jumped 185% to SR 2.17 billion in the first quarter of 2022 compared to SR 761 million during the same period of 2021.

This came after Ma’aden announcement on Wednesday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit grew 212% to SR 3.26 billion in the 1^st quarter of the current year from SR 1.04 billion in the same period of the previous year.

Gross profit of Ma’aden rose 170% to SR 3.88 billion in the first quarter of this year from SR 1.43 billion a year ago, while the profit per share (EPS) climbed to SR 1.76 from SR 0.62.

The higher profits were spurred by:

• Higher average realized sales prices of all products except industrial mineral products;
• Higher net profit of joint ventures attributable to Ma’aden;
• Higher income from time deposits; and
• Lower finance cost by 5%.

This increase in net profit is partially offset by:

• Lower sales volume mainly from primary aluminum, gold, flat rolled products, ammonia phosphate fertilizer and alumina, despite higher sales volume of ammonia resulting from commissioning activities of Ammonia Project 3; and
• Higher costs (cost of sales by 25%, selling, marketing and logistic expenses by 94%, general and administrative expenses by 50%, exploration and technical services expenses by 13% and zakat and income tax expense by 189%).

The reasons for the increase in net profit during the current quarter compared to the previous quarter is:

• Higher average realized sales prices of all products except alumina;
• Higher income from time deposits; and
• Lower costs (cost of sales by 2%, exploration and technical services expenses by 4%, finance cost by 2%).

This increase in net profit is partially offset by:

• Lower sales volume mainly from ammonia phosphate fertilizer, primary aluminum, alumina and gold, despite higher sales volume of ammonia resulting from commissioning activities of Ammonia Project 3; and
• Lower net profit of joint ventures attributable to Ma’aden; and
• Higher costs (selling, marketing and logistic expenses by 20%, general and administrative expenses by 25%, and zakat and income tax expense by 75%).