Gulf’s biggest miner Ma’aden reports 87% leap in net profit for 2022

The Saudi state-owned mining company headquartered in Riyadh, Ma'aden, has reported a more than 87 per cent leap in its full-year 2022 net profit, enhanced by higher sales and higher average prices.

On February 13, 2023, the largest multi-traded mining company in the Middle-East region, Ma’aden, during filing to the Tadawul stock exchange, stated that the company posted $3.23 billion (Saudi riyals 12.13 billion) in net profit in 12 months to the end of December.

Ma’aden is also in the aluminium business, and its move into aluminium production is to maximize the minerals and metals value chain. Ma’aden established a joint venture with Alcoa to build the world’s most efficient and integrated aluminium complex in Saudi Arabia. This USD$ 10.8 billion project includes a bauxite mine, an alumina refinery, a smelter, a casthouse, a can recycling unit and the world’s most advanced rolling mills.

Ebitda, which measures earnings before interest, taxes, depreciation, and amortisation, increased by 51 per cent to more than Saudi riyals 18.68 billion at the end of the reporting period. Revenue increased by 50 per cent to more than Saudi riyals 40 billion between January and December, owing to higher sales volumes. Cash generated from operations increased by 71% y-o-y to 16.21 billion riyals.

Robert Wilt, the CEO of Ma’aden, said.“Ma’aden delivered its safest and most profitable year ever. The transformation initiated a year ago is showing results. Financially, sales and profits grew with working capital improvements contributing to record cash generation levels and further strengthening our balance sheet.”

Ma'aden's Q4 net profit dropped by 53 per cent to Saudi riyals 1.27 billion, lingering by higher depreciation, taxes and finance charges due to higher interest rates worldwide. However, revenue for the three months increased to Saudi riyals 9.47 billion, a rise of 11 per cent year-on-year, as sales volumes increased.

The CEO added, “From an operational viewpoint, the business is in good shape as we continue to drive efficiencies and take proactive measures to address the changing environment. We invest in the next generation of low-cost, long-life projects, improving exploration and delivery capabilities.”

Besides aluminium, Ma’aden’s other significant business includes exploration, gold and base metals, phosphates, and industrial minerals.