Saudi Arabian Mining Co. (Ma’aden) swung to a net loss after Zakat and tax of SAR83.4 million (approximately $22.2 million at current exchange rates) for the third quarter ended Sept. 30, down from a net profit of SAR2.1 billion for last year’s third quarter, the company said in a filing to the country’s Tadawul exchange on Oct. 31.
Ma’aden attributed the profit downturn primarily to a decline in sales by SAR3.8 billion on the back of declining commodity market prices in all business segments, except the base metals and new minerals segment. This was partially offset by a decrease in cost of sales, largely attributable to lower raw material prices.
Revenues were down by 38% year-over-year, to SAR6.23 billion from SAR10 billion, which the company said was due to lower realized prices in its phosphates business segment, which includes ammonia production and sales.