Maaden net profit slumps 83% to SAR 1.57B in 2023; Q4 at SAR 890.4M

Saudi Arabian Mining Co. (Maaden) posted a net profit of SAR 1.57 billion in 2023, an 83% drop from SAR 9.31 billion a year earlier.

The profit-drop came as sales decreased by 27% year-on-year (YoY), or by SAR 11 billion, as commodity prices declined for all products except gold. However, higher sales volumes of ammonia phosphate fertilizer, alumina and gold supported net earnings.

Meanwhile, gross profit fell 57% YoY, or by SAR 9.3 billion, on lower sales. Higher finance costs due to increased borrowing rates and lower share of profit from joint ventures affected the net profit.

This was partially offset by lower raw material prices, higher income from time deposit and a decrease in income taxes and Zakat.

The fourth-quarter net profit declined 12% YoY to SAR 890.4 million.

Sequentially, Maaden turned profitable in Q4 from a net loss of SAR 83.44 million in Q3 2023.

Shareholders’ equity, excluding minority interest, increased to SAR 46.42 billion as of Dec. 31, 2023, compared to SAR 45.06 billion a year earlier.

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