Saudi Arabian Mining Co. (Ma’aden), Riyadh, reported a surge of 87% in its net profit after Zakat and tax for the 12 months to Dec. 31, 2022, driven by higher sales and higher commodity prices.
Ma’aden, posted a full-year net profit of SAR12.13 billion (approximately $3.23 billion at current exchange rates) up from SAR6.48 billion the previous year, according to a company statement on Feb. 13.
EBITDA increased 51% to SAR18.68 billion, up from SAR12.35 billion. Full-year sales increased 50% on the year, to SAR40.28 billion from the year-ago SAR26.77 billion, boosted by the higher commodity prices and higher sales volumes.
But the company’s fourth-quarter net profit declined by 53% to SR1.27 billion (FY2021: SAR2.68 billion) pulled down by higher depreciation, taxes, and finance charges as a result of higher interest rates globally. EBITDA for the quarter was off 23% year-over-year at SAR3.26 billion, down from the year-ago SAR4.26 billion
Sales for the three-month period, however, increased to SR9.47 billion, up 11% year-over-year, as sales volumes rose.
Regarding its Fertilizer Business Unit, Ma’aden posted an 83% rise in the unit’s FY2022 sales to SAR26.72 billion, and an 128% increase in EBITDA to SAR15.58 billion. For the fourth-quarter, sales rose 28% to SAR6.55 billion and EBITDA 22% to SAR3.25 billion.
The company cited higher sales volumes and commodity prices driving the FY2022 performance, although it noted that this was partially offset in the fourth quarter by softer commodity prices and higher operating costs.
Ma’aden said in line with production capacity increases following the completion of the Ammonia 3 project at Ras Al-Khair Industrial City on Saudi Arabia’s East Coast (GM June 10, 2022) and phosphate remedial projects concluded last year, it has provided the following production guidance for the year 2023 of P2O5 of between 2.5 million to 2.9 million mt and ammonia of between 3.1 million and 3.5 million mt.
Ma’aden’s Board recommended to not distribute cash dividends for FY2022. The Boards’ decision is based on the company’s need to continue funding its strategic growth plan and partnership projects, the company said in its earnings statement.