Saudi Arabian Mining Co. reports net profit of USD532M in H1 2024

(MENAFN) Saudi Arabian Mining Co., commonly known as Ma’aden, reported a substantial net profit of SR2 billion (USD532 million) for the first half of 2024, representing a dramatic 160 percent increase compared to the same period in 2023. This remarkable growth in profitability was primarily attributed to a significant rise in sales volume across its operations.

The surge in Ma’aden's financial performance was largely driven by increased revenues from primary aluminum and gold sales. The company also benefited from reduced raw material costs and lower depreciation expenses, which collectively contributed to its enhanced profitability. Additionally, Ma’aden's financial results were positively impacted by several one-time financial adjustments, including an SR469 million insurance claim related to the relining of pots in its smelter plants. The absence of a one-off severance charge of SR192 million, which had adversely affected profitability in the previous year, further supported the company's financial gains.

However, despite these positive developments, the overall rise in net profit faced some limitations. A decline in commodity market prices for most of Ma’aden's products, with gold and alumina being notable exceptions, exerted pressure on the company's revenue. Additionally, increased income taxes and zakat also served to offset some of the profit gains achieved during the period.

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