Jul 19, 2016
The Saudi Arabian Mining Company "Ma’aden" announced its financial results for the quarter ending June 30, 2016, revealing it had achieved SR132 million in net profit (attributable to shareholders), compared to SR169 million in the previous quarter.
Ma’aden reported operating profit of SR326 million in Q2 2016, an increase of 8% from the previous quarter but a decline of 31% from Q2 in 2015. The company noted that revenues for the second quarter declined by 15% in Q2 2016, compared to the same quarter last year as a result of a decline in prices for most of the company’s primary commodities. Ammonium phosphate fertilizer prices declined by 31%, ammonia prices were down by 9%, and average aluminum LME prices declined by 16% compared to the same quarter of 2015.
The decline in commodity prices was partially offset by higher sales volumes of ammonia, DAP and gold, as well as a reduction in cost of sales through lower raw material and operating costs and lower technical and administrative expenses.
The second quarter financial results reflects Ma’aden`s success in dealing with the current decline in prices across global commodity markets, where it has applied a number of initiatives to mitigate the impact of lower prices while preserving its competitiveness, strengthening its global position and significantly contributing to the Kingdom's Vision for 2030 through increasing non-oil exports and creating job opportunities and sustainable development throughout Saudi Arabia.”