‎“AMAK” decreased to 11 million riyals during the second ‎quarter, by 74%‎

The net profit after zakat and tax of Al Masane Al Kobra Minina Co.(AMAK) decreased to 11 million riyals during the second quarter, compared to 40.4 million riyals in the same quarter of last year, by 74%. This came after today’s announcement of the preliminary financial results for the period ending in June 30, 2023 AD (6 months).

The operating profit amounted to 10 million riyals during the second quarter, compared to 42 million riyals in the same quarter of the previous year, a decrease of 76%.

As for gross profit, it amounted to 26 million riyals during the second quarter, compared to 57 million riyals in the same quarter of the previous year, with a decrease of 54%.

Net profit after zakat and tax during the 6-month period amounted to 43.5 million riyals, compared to 82 million riyals in the same period last year, a decrease of 47%.

Earnings per share in the current period amounted to 0.67 riyals, compared to 1.37 riyals 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 copper and zinc prices, the decrease in the quantity of copper and gold sales, the increase in the cost of sales due to the increase in amortization cost, in addition to the increase in general and administrative expenses due to recording compensation expenses on The stock basis for employees during the current quarter, despite the increase in gold prices, the increase in the amount of zinc sales, and the decrease in selling and marketing expenses.

The reason for the decrease in the net profit during the current quarter compared to the previous quarter is due to the decrease in copper and zinc prices, the decrease in the amount of copper and gold sales, in addition to the increase in general and administrative expenses due to the recording of compensation expenses on the basis of shares for employees during the current quarter, despite the decrease Selling and marketing expenses

The reason for the decrease in net profit during the current period compared to the same period of the previous year is due to the decrease in copper and zinc prices, the decrease in the quantity of copper and gold sales, and the increase in the cost of sales due to the increase in amortization expenses and raw materials expenses, in addition to the increase in general and administrative expenses due to the registration of Compensation expenses based on shares for employees despite the increase in gold and silver prices, the increase in the amount of zinc and silver sales, the decrease in selling and marketing expenses, and the increase in other revenues.

The company said that the profit per share is calculated by dividing the profit after calculating zakat and taxes by the weighted average number of ordinary shares outstanding during the period, amounting to (64,801,600) shares (June 30 – 2022: 60,159,752 shares).