Ma’aden’s profits jump 78.2% during 2022, to SR9.3 bln

The Saudi Arabian Mining Company revealed an increase in net profit after zakat and tax during the year ending on December 31, 2022 AD, to 9.3 billion riyals, compared to 5.2 billion riyals in 2021 AD, at a rate of 78.2%. This came after today’s announcement of the annual financial results for the year ending in 12-31-2022.

The operational profit amounted to 13.5 billion riyals in the year ending on December 31, compared to 7.4 billion riyals in the year before last, with a growth of 82.5%.

The total shareholders’ equity “without minority rights” amounted to 45 billion riyals in the current year, compared to 35.6 billion riyals in the year before last, an increase of 26.4%.

Earnings per share in the current year reached 3.79 riyals, compared to 2.12 riyals in the previous year.

The reasons for the increase in net profit during this year compared to the year before the previous year are due to:

An increase in the average selling prices achieved for all products except for gold.

The increase in the quantities sold for all products except for alumina, basic aluminum and gold.

Income from time deposits increased by 5.7 times due to the increase in investments and the rate of return on deposits

Other non-operating revenues, net, increased by 3.8 times due to income from one-time insurance claims amounting to 195 million Saudi riyals for a limited fire at the Ma’aden Phosphate Company’s ammonia plant that occurred during the second quarter of 2021.

This increase in net profit was partially offset by:

Cost of sales increased by 36% due to the increase in raw material costs and production levels,

Selling, marketing and distribution expenses increased by 50%

General and administrative expenses increased by 62% as a result of one-time costs to stimulate institutional transformation initiatives.

Exploration and technical services expenses increased by 36%

The net profit of the joint ventures of Ma’aden decreased by 24%.