Riyadh-based Saudi Arabian Mining Co. (Ma’aden) reported a 91% drop in net profit after Zakat and tax for the second quarter, to SAR350.9 million (approximately $93.5 million at current exchange rates) from SAR4.03 billion the previous year. Revenue declined 41%, to SAR6.97 billion from SAR11.88 billion.
Ma’aden cited lower selling prices versus a record year in FY2022, and higher costs, which were partially offset by higher sales volumes for aluminum, flat rolled products, and all products except ammonia.
The company said the second quarter was a “record” for phosphate production as it pursues production growth. However, it did not provide any volume data.
For the half-year, Ma’aden posted an 88% drop in net profit after Zakat and tax, to SAR770.4 million on revenue of SAR15.01 billion, down from last year’s SAR6.2 billion and SAR20.79 billion, respectively. Revenue declined 28% year-over-year. Six-month profit per share was SAR0.21 versus the year-ago SAR1.68.
Ma’aden said its financial position has further strengthened with reductions in long-term borrowings and net debt as of June 30, 2023, down by 11% and 9%, respectively, from December 2022, including the early debt repayment of SAR3 billion by Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC).
Early this month, Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund (PIF), inked a binding agreement to acquire a 10% stake in Brazilian group Vale SA’s base metals unit, Base Metals Ltd. (GM Aug. 4, p. 35). The Vale base metals unit produces nickel and copper. The transaction is based on an enterprise value of $26 billion, according to Ma’aden.