Saudi Arabia's "Maaden" reports profits of 917 million riyals in the third quarter.

As product sales prices and volumes increase,

In contrast to a net loss of 83.43 million riyals in the same quarter of 2023, Saudi Arabian Mining Company "Maaden" had a net profit of almost 917.5 million riyals in the third quarter of this year.

Compared to a net profit of roughly 1.02 billion riyals in the second quarter of 2024, Maaden's net profits dropped by 5.13% in the third quarter. 

In a statement to the Saudi Stock Exchange today, Wednesday, Maaden stated that the rise in quarterly profits on an annual basis is primarily attributable to a 159% increase in total earnings of 1.47 billion riyals, which is primarily the result of higher sales prices and volumes as well as lower depreciation costs. 94 million riyals were used to support the quarterly profits from the insurance claim for relining cells inside the smelter plants that was received during the third quarter of this year. The rise in operating costs, which included the anticipated credit loss provision, somewhat offset this gain in net income. 

Due to higher selling prices for all products and higher sales volume for all products except alumina, basic aluminum, and gold, the company's revenues in the third quarter of this year increased by 29.21% to SAR 8.04 billion, up from SAR 6.22 billion in the same period last year. 

Maaden's net profit at the end of the first nine months of this year was almost SAR 2.98 billion, up 333.4% from roughly SAR 686.92 million during the same period previous year. 

The company ascribed the increase in profits for this period to a 70% increase in gross profit, which was primarily brought about by the impact of one-time industrial facility fees in the prior year, the decline in raw material costs, the impact of sales prices and volume, and the decrease in depreciation expenses. Profitability during the present period was boosted by the SAR 563 million insurance claim obtained for relining cells inside the smelter plants, in addition to the SAR 192 million in one-time franchise fees charged during the previous year. 

The company clarified that the rise in financing costs, the decline in the joint ventures' net profit share, the rise in operating expenses, including the anticipated credit loss provision, and the rise in zakat and income tax expenses all contributed to the increase in net profit. 

Due mostly to higher selling prices for all products except ammonia and flat rolled products, the company's revenues in the first nine months of this year climbed by 6.3% to SAR 22.57 billion from SAR 21.23 billion in the same period of 2023. Additionally, all items saw an increase in sales volume, with the exception of ammonia and alumina and fertilizers that contain ammonia phosphate.