Maaden 9M 2024 profit soars to SAR 2.98B; Q3 at SAR 971M

Saudi Arabian Mining Co. (Maaden) reported a net profit of SAR 2.97 billion in 9M 2024, compared to SAR 687 million a year earlier.

The profit rise was attributed to a rise of SAR 1.34 billion in sales during the current period driven by increased selling prices for all products except for ammonia and flat-rolled products. Additionally, sales volumes of all products, except for ammonia phosphate fertilizers, ammonia, and alumina, also increased.

Gross profit increased by 70% (SAR 2.8 billion) year-on-year (YoY), mainly due to higher selling prices and volumes, reduced raw material costs, lower depreciation expenses and one-off industrial utility charges’ impact in the prior year.

Recognizing a SAR 563 million insurance claim for relining of pots within smelter plants in 9M 2024, in addition to incurring no one-off severance expenses, compared to the SAR 192 million in expenses recognized in 9M 2023, also buoyed earnings for the current period.

However, this increase in net profit was partially offset by higher financing costs, a decline in the share of net profit from joint ventures, an increase in operating expenses, including provisions for expected credit losses, and a rise in Zakat and income tax expenses.

In Q3 2024, Maaden posted a net profit of SAR 971.48 million in Q3 2024, against a loss of SAR 83.44 million a year earlier, as revenue grew by 29% YoY mainly due to higher selling prices and sales volumes.

Maaden’s quarterly net profit fell 5.1% from SAR 1.02 billion in Q2 2024 due to a rise in operating expenses, including provisions for expected credit losses and a decline in insurance income.

Total shareholders’ equity, after minority interest, reached SAR 49.15 billion as of Sept. 30, 2024, compared to SAR 45.76 million in the corresponding period of 2023.

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