Saudi mining giant Ma’aden reports H1 net profit increase of 232% to reach SAR6.2bn

Saudi Arabian mining company Ma’aden, which is listed on the Saudi Exchange, announced that its net profit for Q2 increased by 85 per cent quarter-on-quarter to SAR4bn and by 232 per cent for H1 2022 against same period last year to reach SAR6.2bn.

Sales rose 95 per cent quarter on quarter to SAR11.9bn bringing H1 2022 sales to SAR20.8bn, an 80 per cent improvement on H1 2021.

The second quarter’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to SAR6.9bn, reflecting robust sales performance; H1 2022’s EBITDA increased by 128 per cent, compared with the same period in the prior year, to SAR11.3bn.

Robert Wilt, CEO of Ma’aden said: “Ma’aden delivered a record first half, driven by enhanced operations leading to increased sales. This record performance was supported by favourable market dynamics, delivered while maintaining the highest safety standards and making progress towards our ESG goals. Our success could not have been achieved without the over 6,000 employees who remain committed to Ma’aden’s values and operational excellence.

“As we look to the rest of 2022, we will continue to invest in our production capacity across our current portfolio to meet demand, whilst exploring Saudi Arabia’s untapped mineral resources to ensure long-term sustainable growth.

#معادن تستمر في تحقيق نتائج قياسية للربع الثاني لعام ٢٠٢٢#MAADEN delivers record Q2 2022 performance pic.twitter.com/DLfMTaMYJG

— Ma‘aden | معادن (@MaadenKSA) August 11, 2022

Performance highlights
Ma’aden’s growth during the period was driven by increased production volumes from new projects and improved efficiency in existing operations.

Ma’aden’s Ammonia III ramped up production, contributing to overall sales.  The Ammonia III plant has an output capacity of 1.1 million tonnes per year and is part of an ongoing expansion that will strengthen the kingdom’s position as one of the top producers of phosphate fertilisers in the world.

Production at Ma’aden Wa’ad Al Shamaal Phosphate company continued to ramp up, leading to a 15 per cent increase in phosphate fertiliser sales volumes at the plant compared to Q2 2021. The aluminium business also continued its strong performance, on the back of stable efficiency in operations and increased sales.

Ma’aden continues to invest in long term growth and is on track to increase its current gold mining capacity by 70 per cent with a new plant in Mansourah Massarah which is in the commissioning phase.

Once completed, Mansourah Massarah will be the largest gold project in the kingdom.