Maaden profits increased to SR2.10 bln during Q3, by 65%

The net profit after zakat and tax for the Saudi Arabian Mining Company “Maaden” grew to SR2.10 billion during the third quarter, compared to SR1.27 billion in the same quarter of last year by 65%.
This came after on Tuesday announcement of the preliminary financial results for the period ending on September 30, 2022 (9 months).
The gross profit amounted to SR3.57 billion in the third quarter, compared to SR2.26 billion in the same quarter of the previous year, an increase of 58%.
The net profit after zakat and tax in the 9-month period amounted to SR8.30 billion, compared to SR3.13 billion in the same period last year, a growth of 165%.
Profits per share in the current period reached SR3.37, compared to SR1.27 in the same period last year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
The reasons for the increase in net profit during the current quarter compared to the same quarter of the previous year are:
• Higher average realized sales prices of all products except gold;
• Higher sales volumes of all products except alumina;
• Higher income from time deposits by 7.5 times due to increased investments placed and deposit rates;
• Higher other non-operating income, net by 8.2 times due to one-off insurance claim income amounting to SR195 million against limited fire incident at MPC’s Ammonia plant in Q2 2021; and
• Lower technical services expenses by 22%.
This increase in net profit is partially offset by:
• Higher cost of sales by 45% as a result of increase in raw material costs and production levels. Higher selling, marketing and logistic expenses by 65%. Higher general and administrative expenses by 68% due to increased cost of personnel and contracted services;
• Lower share in net profit of joint ventures attributable to Ma’aden by 34%;
• Higher finance cost by 26% due to increase in SIBOR and LIBOR rates; and
• Higher zakat and income tax expense by 35% as a result of increase in profitability of the Group.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The reasons for the decrease in net profit during the current quarter compared to the previous quarter are:
• Lower average realized sales prices of all products except industrial mineral products;
• Lower sales volumes from ammonia, gold and flat rolled products partially offset by higher sales volumes of ammonium phosphate fertilizer, aluminum, alumina and Meridian’s* products;
• Lower net profit of joint ventures attributable to Ma’aden by 62%;
• Higher cost of sales by 13% as a result of increase in raw material costs and production levels. Higher selling, marketing and logistic expenses by 6% and general and administrative expenses by 7%; and
• Higher finance cost by 26% due to increase in SIBOR and LIBOR rates.
This decrease in net profit is partially offset by:
• Higher income from time deposits by 100% due to increased investments placed and deposit rates;
• Higher other non-operating income, net by 6.7 times due to one-off insurance claim income amounting to SR 195 million against limited fire incident at MPC’s Ammonia plant in Q2 2021;
• Lower zakat and income tax expense by 42% as a result of decrease in profitability of the Group; and
• Lower technical services expenses by 39%.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
The reasons for the increase in net profit during the current period compared to the same period of the previous year are:
• Higher average realized sales prices of all products except industrial mineral products;
• Higher sales volumes of all products except alumina, gold and flat rolled products;
• Higher net profit of joint ventures attributable to Ma’aden by 7%;
• Higher income from time deposits by 4.1 times due to increased investments placed and deposit rates; and
• Higher other non-operating income, net by 2.6 times due to one-off insurance claim income amounting to SR 195 million against limited fire incident at MPC’s Ammonia plant in Q2 2021.
This increase in net profit is partially offset by:
• Higher cost of sales by 38% as a result of increase in raw material costs and production levels. Higher selling, marketing and logistic expenses by 58%. Higher general and administrative expenses by 53% due to increased cost of personnel and contracted services;
• Higher technical services expenses by 7% due to increase in drilling activities;
• Higher finance cost by 7% due to increase in SIBOR and LIBOR rates; and
• Higher zakat and income tax expense by 99% as a result of increase in profitability of the Group.
During the period, the Group has voluntarily reclassified the “cash flow hedge reserve attributable to ordinary shareholders of the parent company” from “Retained earnings” and presented it within “Other reserves” for better presentation. The comparative information has been restated to conform to the new presentation.
A. During the period ended 30 September 2022, the Group has changed its presentation for consolidated interim financial statements from the complete set prepared under International Financial Reporting Standards (“IFRS”) to condensed set prepared under International Accounting Standard 34 “Interim Financial Reporting”. This change is in accordance with the standards and pronouncements that are issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”).
These condensed consolidated interim financial statements, therefore, should be read in conjunction with the Group’s last annual consolidated financial statements for the year ended 31 December 2021, which have been prepared in accordance with IFRS that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements that are issued by SOCPA.
B. As a result of issuance of bonus shares, as approved by Extraordinary General Assembly on 30 May 2022, the outstanding weighted average number of ordinary shares post the bonus shares issuance (2,461,182,292 shares) have been used for calculation of basic and diluted earnings per ordinary share from continuing operations, for all periods presented.