Sunday 13 August 2023

#SaudiArabia's Ma'aden profit sinks 91% on lower prices, higher costs | Reuters

Saudi Arabia's Ma'aden profit sinks 91% on lower prices, higher costs | Reuters

Saudi Arabian Mining Company (1211.SE), known as Ma'aden, said on Sunday its second-quarter profit tumbled more than 90% on lower sales prices and higher expenses as it flagged a mixed outlook for its products.

Ma'aden posted net profit of 350.9 million riyals ($93.53 million) in the second quarter, down 91.3% from just over 4 billion riyals a year prior, the firm said in a stock exchange filing.

That missed analysts' average estimate of 577.6 million riyals in net profit for the second quarter, according to Refinitiv data.

It was also 16.3% below Ma'aden's first-quarter net profit of 419.4 million riyals.

The fall in profit was due to lower average realized sales prices for all products except gold, higher general and administrative costs "including expected credit loss allowance by 40%," exploration and technical services expenses rising 116%, an 86% increase in finance cost due to higher interest rates and profit from a Ma'aden joint venture dropping 59%.

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