Ma’aden’s profits jump 134% during Q1 to 982 million riyals

Saudi Arabian Mining Company “Maaden” announced that net profit grew to 982 million riyals during the first quarter of 2024, compared to 419 million riyals in the same quarter of last year, a rate of 134%. This came after today’s announcement of the financial results for the period ending on March 31, 2024 (3 Months).

Operating profit reached 1.86 billion riyals in the first quarter of 2024, compared to 930 million riyals in the same quarter of the previous year, an increase of 99%.

Earnings per share amounted to 0.27 riyals in the first quarter of 2024, compared to 0.11 riyals in the same quarter of the previous year.

Sales during the current quarter decreased by SAR 697 million (9%) compared to the same quarter of the previous year mainly due to lower product selling prices for all products except gold and alumina. This decrease in sales was partially offset by higher sales volumes for primary aluminium, ammonia and gold.

The reason for the increase in net profit during the current quarter compared to the same quarter of the previous year is that net profit for the current quarter increased by 562 million riyals (134%) compared to the same quarter of the previous year, and this is due to an increase in total profit by 828 million riyals ( 52%) This is mainly due to the impact of higher sales volume, lower cost of raw materials, lower depreciation expense and the impact of one-time charges related to industrial facilities in the previous year. In addition, insurance claims received for relining cells within smelter plants amounting to SAR 199 million contributed to supporting profitability during the current quarter. This increase in net profit was partially offset by lower market selling prices for all products except gold and alumina and higher income taxes and zakat expense.

The reason for the increase in sales/revenues during the current quarter compared to the previous quarter is that sales during the current quarter decreased by SAR 686 million (9%) compared to the previous quarter, mainly due to lower selling prices of products as well as sales volume for ammonia and basic aluminum. This decrease in sales was partially offset by higher product selling prices and higher sales volumes for ammonium phosphate and gold fertilizers.

Net profit for the year for the quarter increased by SAR 91 million (10%) compared to the previous quarter, mainly due to lower operating and exploration costs in addition to the insurance claim received for relining cells within smelter plants. This was also supported by lower depreciation expenses during the quarter. This increase in net profit was partially offset by a decrease in gross profit due to lower sales.

additional information:

As a result of the issuance of bonus shares, as approved by the Extraordinary General Meeting on 7 June 2023, the weighted average number of ordinary shares following the issuance of bonus shares was used to calculate basic and diluted earnings per share of ordinary shares from continuing operations for all periods presented.