Maaden profit soars to SAR 2B in H1 2024, SAR 1.02B in Q2

Saudi Arabian Mining Co. (Maaden) reported a net profit of SAR 2 billion in H1 2024, compared to SAR 770.4 million a year earlier.

Gross profit increased by 44% (SAR 1.39 billion) year-on-year, mainly due to higher sales volumes, reduced raw material costs, and lower depreciation expenses in H1 2024. This is besides the impact that the one-off industrial utility charges had in the prior year.

In addition, a SAR 469 million insurance claim for the relining of pots within smelter plants was received in H1 2024, along with realizing a one-off severance charge worth SAR 192 million in H1 2023 which supported profitability during the current period.

Lower commodity market prices of all products except gold and alumina, alongside higher income taxes and Zakat, offset Maaden’s first-half bottom line.

However, H1 2024 sales decreased by 3% (SAR 479 million), compared to the same period of the prior year, mainly due to lower commodity market prices of all products except gold and alumina. This sales pullback was partially offset by higher sales volumes of primary aluminum and gold during the six-month period.

The second-quarter net profit surged to SAR 1.02 billion, from SAR 350.94 million in Q2 2023, supported by higher sales and gross profit. 

Maaden’s quarterly net profit grew 4.3% from SAR 981.69 million in Q1 2024 as operating expenses slumped by SAR 81 million on a sequential basis, with the insurance income growing by SAR 70 million amid a SAR 113 million drop in Zakat and income tax expenses.

Shareholders’ equity, after minority interest, rose to SAR 48.29 billion as of June 30, 2024, from SAR 45.88 billion a year earlier. 

View More Financial Results