Saudi Arabian Mining Co. (Ma’aden), Riyadh, reported a 246% increase in net profit to SAR2.93 billion (approximately $780 million at current exchange rates) on sales of SAR8.914 billion for the first quarter ended March 31, 2022, up from the year-ago SAR0.85 billion and SAR5.45 billion, respectively.
EBITDA doubled to SAR4.404 billion, up from SAR2.193 billion the previous year. Sales increased by 64%.
The company’s Fertilizer business posted a 207% increase in EBITDA to SAR3.073 billion on a 105% rise in sales to SAR5.536 billion, compared with the same year-earlier period.
In its earnings presentation on June 2, Ma’aden pointed out that its phosphates business contributed 70% to the company’s EBITDA in the first quarter.
DAP production increased to 1.148 million mt in the quarter under review, an increase of 77,000 mt from first-quarter 2021, while ammonium phosphate fertilizer sales were 1.06 million mt, down 20,000 mt year-over-year.
Ammonia production totaled 710,000 mt, a 213,000 mt increase year-over-year, while ammonia sales were 351,000 mt, a year-over-year increase of 92,000 mt.
Ma’aden confirmed its new “Ammonia 3” plant at Ras Al-Khair Industrial City on Saudi Arabia’s East Coast is operational, saying commissioning is on track and trial production ongoing.
At the same time, the Saudi company said production is ramping up at the 1.1 million mt/y capacity plant, and reiterated commercial production is now planned for the third quarter. It expects nameplate capacity to be achieved by the end of this year. It originally had been targeting commercial production to begin in the first quarter of 2022 (GM Aug. 13, 2021; June 18, 2021).
Ma’aden also reported that the first shipments from the Ammonia 3 plant had been made from the new berth. However, industry sources said these shipments are to cover existing contracts, and are not new spot sales.
Sources have reported that some Ammonia 3 material is being discussed for the spot market, but the current asking price is still too high for the market (GM June 3, p. 2)
The company announced the completion of construction and pre-commissioning activities at the new plant in February (GM Feb.11, p. 33).