Maaden 9M 2024 profit soars to SAR 2.98B; Q3 at SAR 971M

Saudi Arabian Mining Co. (Maaden) reported a net profit of SAR 2.97 billion in 9M 2024, compared to SAR 687 million a year earlier.

The profit rise was attributed to a rise of SAR 1.34 billion in sales during the current period driven by increased selling prices for all products except for ammonia and flat-rolled products. Additionally, sales volumes of all products, except for ammonia phosphate fertilizers, ammonia, and alumina, also increased.

Gross profit increased by 70% (SAR 2.8 billion) year-on-year (YoY), mainly due to higher selling prices and volumes, reduced raw material costs, lower depreciation expenses and one-off industrial utility charges’ impact in the prior year.

In addition, a SAR 563 million insurance claim for 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.

However, this increase in net profit was partially offset by higher financing costs, a decline in the share of net profit from joint ventures, an increase in operating expenses, including provisions for expected credit losses, and a rise in Zakat and income tax expenses.

In Q3 2024, Maaden posted a net profit of SAR 971.48 million in Q3 2024, against a loss of SAR 83.44 million a year earlier, as revenue grew by 29% YoY mainly due to higher selling prices and sales volumes.

Maaden’s quarterly net profit fell 5.1% from SAR 1.02 billion in Q2 2024 due to a rise in operating expenses, including provisions for expected credit losses and a decline in insurance income.

Total shareholders’ equity, after minority interest, reached SAR 49.15 billion as of Sept. 30, 2024, compared to SAR 45.76 million in the corresponding period of 2023.

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