Maadaniyah expects to turn profit in Q4 2022: CEO

National Metal Manufacturing and Casting Co. (Maadaniyah) is likely to turn profitable in the fourth quarter of the year, thanks to lower production input costs, CEO Shaker Otaibi said, ruling out turning to profit in Q3.

The company’s first-half results were hit by several factors, including the higher cost of production inputs in the country of origin, which led the company to import from other countries such as India and Spain. China is still the main source of Maadaniyah’s products, he told CNBC Arabia.

Other factors included a significant increase in shipping rates, Otaibi noted, adding that these rates have started to moderate especially in the US and China, despite being higher compared to pre-COVID levels.

Elsewhere, Otaibi said that the aluminum foundry plant, for which a memorandum of understanding was signed with IGL Group, will be financed by the company’s internal resources, along with a loan to fund up to 70% of the project from the Saudi Industrial Development Fund (SIDF). A total of 70% of the project’s production will be exported in the first five years of operation to the US and Europe, until the company becomes able to establish a sales base in Saudi Arabia.

Maadaniyah deepened its H1 2022 net losses to SAR 15.3 million, from SAR 14.5 million a year earlier, Argaam earlier reported