Maaden to prioritize debt reduction, dividend freeze currently: CEO

Logo of Maaden

Saudi Arabian Mining Co. (Maaden) needs to give priority to debt reduction after having invested nearly $40 billion in Saudi projects over the past years, Bloomberg reported, citing CEO Abdulaziz Al Harbi.

The company is seeking to take advantage of the large hikes in commodity prices to repay debts and strengthen its balance sheet before starting international acquisitions, Al Harbi said.

Maaden decided not to distribute dividends currently, he further added.

The company plans to reduce the ratio of debt-to-earnings before interest, taxes, depreciation and amortization by half over the next five years.

The CEO maintained a cautious outlook for basic commodity prices, indicating that the high number of COVID-19 infections in India and South America might reduce global demand, while some mining companies will look to benefit by increasing supplies.

Maaden will unlikely acquire any foreign companies or mines in the next 12 to 18 months, Al Harbi concluded.

According to data compiled by Argaam, Maaden achieved a net profit of SAR 761.2 million in Q1 2021, compared to a loss of SAR 353.3 million in the same period last year.