Saudi Arabian Mining Co. (Ma’aden), Riyadh, swung to the positive column for the second quarter ending June 30, 2021, reporting a net profit after Zakat and tax of SAR1.104 billion (approximately $294 million at current exchange rates), against a net loss of SAR434.15 million a year ago, the company reported in a statement to the Saudi bourse. Revenue rose by 52 percent to SAR6.101 billion, up from SAR4.016 billion.
The company cited higher average realized price of all products except industrial minerals, despite a decrease in the sales volumes of ammonia, alumina, and gold. The company also saw an increase in net profit attributable to Ma’aden’s share of joint ventures and an increase in other income.
For the half year, Ma’aden posted a net profit after Zakat and tax of SAR1.865 billion, against a loss of SAR787.4 million a year ago, according to Saudi financial news portal, Argaam, citing a phone interview with Ma’aden’s CEO Abdulaziz Al Harbi.
Al Harbi expects demand for fertilizers to remain strong and production as likely to continue at the same high levels.
According to the Argaam report, Ma’aden’s new 1.1 million mt/y ammonia at Ras Al-Khair Industrial City on Saudi Arabia’s East Coast remains on track for completion in the fourth quarter of 2021, with operations to begin in the first quarter of 2022 (GM June 18, p. 1).
The “Ammonia-3” plant is the first unit under construction as part of Ma’aden’s ambitious plans for a third large-scale phosphate complex, “Phosphate 3,” which, upon completion, will add a further 3 million mt/y of phosphate fertilizer production capacity to Ma’aden’s portfolio.
However, ammonia from Ammonia-3 looks likely to be sold initially on the market. In February, local media, citing Ma’aden, reported output from the new plant would add 1.1 million mt to the Saudi producer’s sales (GM Feb. 12, p. 37).