Maaden net profit up 78% to SAR 9.31 bln in 2022; Q4 hits SAR 1.01 bln

Saudi Arabian Mining Co. (Maaden) posted a net profit after Zakat and tax of SAR 9.31 billion in 2022, a 78% increase from SAR 5.22 billion a year earlier.

The positive performance was driven by higher average realized sales prices of all products except gold, higher sales volumes of all products except alumina, primary aluminum and gold, and higher income from time deposits (5.7x) on increased investments and deposit rates.

In addition, the company reported a higher other non-operating income (3.8x) amid one-off insurance claim income of SAR 195 million following a contained fire incident at MPC’s Ammonia plant in Q2 2021.

The increase in net profit was partially offset by a 36% surge in cost of sales as a result of increased raw material costs and production levels; higher selling, marketing and logistic expenses by 50% and higher general and administrative expenses by 62% due to one-off costs incurred for stimulating organizational transformation initiatives.

Maaden reported a 36% rise in exploration and technical services expenses, a 24% decline in the share of net profit in joint ventures, a 26% jump in finance cost due to an increase in SAIBOR and LIBOR rates, and a 101% surge in Zakat and income tax expenses on higher profitability.

The fourth-quarter net profit after Zakat and tax fell 51% to SAR 1.01 billion, from SAR 2.09 billion in the year-earlier period.

Sequentially, net profit retreated 51.7% from SAR 2.10 billion in Q3 2022.

Shareholders’ equity, excluding minority interest, increased to SAR 45.07 billion as of Dec. 31, 2022, compared to SAR 35.65 billion a year earlier.

View More Financial Results