Oct 29, 2008
Riyadh, Saudi Arabia,29 October 2008: President of Saudi Arabian Mining Company (Ma'aden), Dr. Abdullah bin Issa Al-Dabbagh, said the preliminary consolidated net profit for the first nine months ending on 30/9/2008 is 82 million riyals, with a profit decline of (44%), compared to the same period in 2007, when the profit was 148 million riyals.
Earnings per share are 0.14 riyals, compared to 0.37 riyals for the same period in 2007, bearing in mind that the earnings per share were calculated using the weighted average in 2008, while they were calculated using the number of shares before privatization for that period in 2007. The decrease in net profit in the past period is due to administrative and general expenses related to privatization, in addition to the decline in investment earnings during the first half of the year as a result of redirecting some amounts to be spent on the Company’s phosphate and aluminum projects, as well as the infrastructure for these projects.
Despite the overall rise in the value of profit (234%), compared to the same period last year, an increase in administrative expenses, especially privatization expenses for this year, has led to higher operating losses of 8 million riyals. The preliminary consolidated operating losses for the first nine months ending on 30/9/2008 amounted to 37 million riyals, compared to operating losses of 29 million riyals over the corresponding period of 2007 - an increase of 29%. In 2008, the third quarter’s net profit amounted to 64 million riyals, compared to 28 million riyals over the corresponding period of 2007 - an increase of 130%. That can be attributed to the high prices of minerals and the return on investment as privatization funds are received.
NOTES TO EDITORS
About Ma’aden
Ma'aden was established as a Saudi Arabian joint stock company in March 1997 to facilitate the development of Saudi Arabia’s non-petroleum mineral resources and to diversify the Kingdom’s economy away from the petroleum and petrochemical sectors. Ma’aden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. In July 2008 Ma’aden offered 50% of the company’s shares for subscription in a successful SR 9.25 billion IPO. Ma’aden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health and safety, environmental and social issues.
Ma'aden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. The company is committed to the best international and local standards in environmental regulations and values its role in Corporate Social Responsibility.
Ma'aden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health, safety, environmental and social issues.
Maaden
Aqeel Alonazi
Ma'aden Corporate Communications Department
T: +966 55 3063813
E: alonaziam@maaden.com.sa