Maaden’s H1 2023 profit dives 88% to SAR 770.4 mln; Q2 at SAR 350.9 mln

Saudi Arabian Mining Co. (Maaden) reported a net profit slump of 88% to SAR 770.4 million in H1 2023, compared to SAR 6.20 billion a year earlier.

The half-year earnings were impacted by lower average realized selling prices of all products except gold, a 10% year-on-year (YoY) increase in the cost of sales due to higher production costs and sales volumes. This was partially offset by a decrease in raw material costs.  

Maaden reported a 27% rise YoY in general and administrative expenses, including expected credit loss provisions. Further, exploration and technical services expenses surged 121% YoY, with finance cost increasing by 96% on an annual basis due to increases in SAIBOR and LIBOR rates. 

The mining company reported a 51% drop YoY in net profits of joint ventures. On the other hand, sales volumes of all products, except primary aluminum and flat rolled products, went up. Other non-operating income soared 137% YoY, while Zakat expenses, income tax and royalties declined by 9%.  

The second-quarter net profit plummeted 91% to SAR 350.9 million from SAR 4.02 billion in Q2 2022, on a decline in average realized selling prices of all products except gold. Maaden recorded a 40% rise YoY in general and administrative expenses, including expected credit loss provisions. Further, exploration and technical services expenses surged 116% YoY, with finance cost increasing by 86% annually due to increased SAIBOR and LIBOR rates. 

Maaden’s quarterly net profit dropped by 16.3% from SAR 419.42 million in Q1 2023. Selling and marketing expenses grew by 10% on a sequential basis. General and administrative expenses, including expected credit loss provisions, increased by 14% quarter-on-quarter. 

Shareholders’ equity, after minority interest, rose to SAR 45.88 billion as of June 30, 2023, from SAR 41.94 billion a year earlier.

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