Ma’aden announces interim financial results for quarter ended on March 31

Saudi Arabia Mining Company (Ma'aden) announced Sunday the interim financial results for the quarter ended on March 31 (three months).

Financial highlights of the quarter vs same quarter last year

Revenue declined by 17 per cent due to lower commodity prices for all products and decrease in aluminium sales volume. The average realized prices DAP and ammonia declined by approximately 30 per cent, whereas aluminium prices (including premium) declined by around 25 per cent compared to the same quarter of last year.

The impact of profitability from the decline of revenues was partly offset by 16 per cent reduction in cost of sales through lower raw material costs and the effects of the company's ongoing initiative to reduce operating costs. This initiative led to a reduction in exploration and technical services expenses. Net income also benefited from an increase in income from short term investment and another income.

Financial highlights of the quarter vs previous quarter

Compared to Q4-2015, revenues in the first quarter of 2016 were lower by 15 per cent mainly due to 24 per cent lower prices for aluminium and gold were slightly higher compare to the previous quarter. Revenues also benefited from higher sales of ammonia and aluminium.

Cost of sales remained broadly flat despite the higher production volumes whilst selling, marketing and logistic expenses, general and administrative expenses, and exploration and technical services expenses all declined from the previous quarter as a result of the ongoing cost reduction initiative. Net income benefited from an increase in income from short term investments and other income.