HomeIndustriesSaudi Arabian Mining Company Sees Profits Plunge By 91%

Saudi Arabian Mining Company Sees Profits Plunge By 91%

Saudi Arabian Mining Company, known as Ma’aden, saw its second-quarter profits fall by 91% as sale prices dropped and expenses for the company rose. Net profit for the quarter was 350.9 million riyals ($93.53 million), down 91% from the 4 billion riyals posted the previous year.

In addition to missing experts’ estimates compiled by Refinitiv data, Ma’aden’s second-quarter net profit fell 16.3% short of the company’s first-quarter net profit of 419.4 million riyals.

Despite sales actually rising for the quarter, net profit fell due to a 6% fall in prices. This decline came as a result of a rise in raw material costs, which largely came due to higher production costs. The realized price of ammonia declined most dramatically, from $643 per metric tonne in the first quarter to $253 in the second quarter.

Still, the company expects to make a turnaround this quarter. “We are beginning to see an improvement in raw material pricing and, despite the challenging market environment, remain well-placed to meet the growing long-term demand for our products,” Chief Executive Robert Wilt stated.

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