Maaden’s Q2 profit ahead of estimates, says Albilad Cap

Saudi Arabian Mining Co.’s (Maaden) Q2 2017 net profit of SAR 356 million beat Albilad Capital’s estimate of SAR 340 million and average consensus forecasts of SAR 341 million, the brokerage firm said in an earnings review.

The company’s consolidated sales in H1 2017 rose 18 percent year-on-year (YoY) to SAR 5.7 billion, backed by higher volumes of ammonia, gold and phosphate.

Maaden commenced commercial operations at Waad Al-Shamal’s ammonia plant early in 2017 and also started commissioning of its diammonium phosphate (DAP) plant in July.

“Accordingly, all main expansions of the company are now in commercial production phase, which will be positively reflected on the income statement going forward,” Albilad Capital added.

However, the mining firm is projected to incur higher depreciation charges and interest expenses in the second half of the year.

The brokerage firm remained “neutral” on Maaden, upping the stock’s price target to SAR 47 from SAR 44, on the second-quarter strong results and launch of operations at the DAP plant.