Ma’aden’s Third-Quarter Profit Falls 23.7% as Costs Rise

Saudi mining company Ma’aden’s third-quarter net profit fell 23.7% year on year to 1.68 billion riyals, while revenue rose 11.3% to 11.14 billion riyals.

Higher supply-chain and raw-material costs, especially sulphur, squeezed profits in its phosphate business, and the company had no ammonia export sales during the quarter.

Phosphate fertilizer production rose 33% from the previous quarter to about 1.6 million tonnes, but those gains did not make up for the higher costs.

Stronger gold and aluminium results partly offset the pressure: gold revenue rose 49% and aluminium revenue increased 32% from a year earlier.

The profit decline matters because it came despite higher sales revenue, and net profit was below the average analyst estimate cited in the report.

Ma’aden kept its phosphate fertilizer production target unchanged at 6 million to 6.5 million tonnes for the year, while its ammonia production outlook remained suspended.

The company cut its capital spending forecast by $1 billion from its February estimate, to about $3.15 billion for the year.