Lower alumiunium, gold sales drive Ma'aden's 130% H1 net profit decline
Riyadh-based miner posted a net profit loss of $98.9m for H1 2019, which came despite a 22% hike in revenues to $2.3bn
Net profits in the first half of 2019 at Saudi Arabian Mining Company (Ma’aden) fell 130% compared to the same period a year ago, a fall that was partly caused due to lower aluminium and gold sales volumes.
The miner, according to a filing on Saudi bourse, Tadawul, reported a net profit loss after zakat and tax of $98.9m (SAR370.9m) for the six-month period ending 30 June, 2019 – a significant fall on 2018’s corresponding first-half figure of $320m (SAR1.2bn).
This year-on-year drop came despite a 22% increase in revenues during the period, with the group bringing in $2.3bn (SAR8.5bn) in cash during the opening half of the year.
In its bourse missive, the group cited a “fall in average realised prices of all products”, alongside a drop in aluminium and gold sales volumes, as factors behind its performance.
The results come amid a flurry of activity at the Riyadh-headquartered mining giant in 2019's opening half.
In April 2019, Ma'aden inked a deal to buy fertiliser distribution firm Meridian in what is the group’s first international acquisition as it bolsters its market share in Africa.
The deal was subject to regulatory approval and “other customary conditions”, and was expected to close in Q3 2019, according to a Tadawul missive at the time.
Last week saw Ma’aden and a consortium of India's Larsen and Toubro and Finnish firm Outotec ink a $606m (SAR2.7bn) engineering, procurement, and construction contract for the two-site Mansorah and Massarah gold mine factory in Saudi Arabia.