Maaden delivers strong operational results in Q2 2016 with production volume higher in aluminium

Saudi Arabian Mining Company (Maaden) has announced the consolidated interim financial statements for the quarter and six months period ended June 30 2016.

During the quarter under review, Maaden posted strong operational results across all its business verticals with higher production volume in aluminium as compared to the first quarter of 2016.

Primary aluminium production in second quarter 2016 stood at 220 kilo tonnes, up six per cent from the previous quarter. Maaden attributed the increase in production to mainly increased operational efficiency and additional metal sourced from the company’s recycling facility.

Maaden's quarterly net profit declined 51 per cent year-on-year and 21 per cent quarter-on-quarter, while, six-month profit slid 43 per cent year-on-year due to lower commodity prices for raw materials and aluminium products. The decline in commodity prices, however, was partially offset by higher aluminium sales volume.

Aluminium prices declined 16 per cent compared to the same quarter previous year.

Lower sales revenues in the current quarter and six-month period under review impacted heavily on the company’s profitability. Reduction in cost of sales through lower raw material costs and steps taken by the group to pare down operating costs, however, partially balanced off the decline in sales revenues.