Saudi Maaden Q3 income soars on high prices
Riyadh, October 10, 2012
Saudi Arabian Mining Company (Maaden) reported a forecast-beating third-quarter profit on Wednesday, helped mainly by higher prices of its core products and the start up of big new production lines.
The state-controlled minerals firm made a net profit of SR311 million ($82.93 million) compared with SR27 million in the prior-year period, it said in a bourse statement.
The net income for the second-quarter was SR128 million. Five analysts polled by Reuters expected the company to post an average third-quarter profit of SR241 million.
Maaden said the increase in third-quarter net income was "attributed to the beginning of commercial production of ammonia and DAP" as well as "higher realised price and quantity sold of di-ammonium phosphate (which is used to make industrial fertiliser), ammonia and gold."
The partly state-owned company is in a phase of rapid production growth, with plans to build a new $1.5 billion aluminium refinery, add a new line to an existing aluminium smelter, and invest $5.6 billion in a phosphate project.
In June, Maaden said it had received bank commitments for a SR7 billion riyal Islamic loan.-Reuters