AMAK profits down 30.8% to SR40.4 mln in Q2

The net profit after zakat and tax of Almasane Alkobra Mining Co. (AMAK) declined to SR40.4 million during the second quarter, compared to SR58.4 million in the same quarter of the last year, at a rate of 30.8%. This came after AMAK announcement on Tuesday about the preliminary financial results for the period ending 30-06-2022 (6 months).

The operational profit amounted to SR41.5 million in the second quarter, compared to SR56.5 million in the same quarter of the last year, down 26.3%.

The gross profit in the second quarter amounted to SR82.2 million, compared to SR92.7 million in the same quarter of the last year, down 11.3%.

Profits per share in the current period amounted to SR 1.37, compared to SR 1.69 in the same period last year.

The reason for the decrease in net profit during the current quarter compared to the same quarter of last year is due to the decrease in sales as a result of the decrease in the realized prices for most minerals despite the increase in production and selling quantities, in addition to the increase in the cost of sales due to the increase in the amount of sales and the increase in the calculation of extinguishing fees and the financial consideration for exploitation in addition to the increase in taxes And zakat in the current quarter due to the registration of a credit tax in the same quarter of last year, which was offset by an increase in other revenues.

The reason for the slight decrease in net profit for the current quarter compared to the previous quarter is due to a slight decrease in sales by 8% as a result of the decrease in the realized prices of most minerals, despite the increase in production and selling quantities, which was offset by a decrease in general and administrative expenses and financing cost, an increase in other revenues and a decrease in Zakat expense.

The reason for decrease in net profit during the current period compared to the same period last year is due to the increase in general and administrative expenses as a result of the company’s registration of its share and expenses related to the initial public offering, in addition to the increase in selling and marketing expenses and increase in Zakat expense compared to a credit tax in the same period of last year, despite an increase in sales and gross profit during the period as a result of the operation of the Guyan mine at full capacity.

Additional Information:

Profit per share is calculated by dividing the profit after zakat and taxes by the weighted average number of ordinary shares outstanding during the period amounting to 60,159,752 shares (30-Jun-2021: 54,870,015 shares).