Saudi Arabian Mining Company (Maaden) has reported solid results for the second quarter of 2026 with its net profit surging 13% to SAR2.18 billion ($574 million) over last year's figure of SAR1.92 billion ($505 million) and its revenue hitting SAR10.9 billion ($2.87 billion), up 16% over SAR9.42 billion ($2.48 billion) last year.

Announcing the results for the three-month period ended June 30, 2026, Maaden said the increase in revenue was mainly driven by higher commodity prices across all of its business units, as well as higher sales volumes in aluminium and gold. The gains were partly offset by lower sales volumes in its phosphate business.

The Saudi industrial giant said the gross profit fell 4% to SAR3.39 billion, while operating profit declined 8% to SAR2.36 billion.

Its profitability was weighed down by higher costs in its phosphate business, particularly logistics and raw material expenses, including higher sulphur costs. Higher operating expenses, mainly related to exploration spending, also weighed on earnings, it stated.

Despite these pressures, Maaden said its net profit growth was supported by lower finance costs, higher income from equity-accounted investments and higher other operating income.

Compared with the previous quarter, Maaden's second-quarter revenue rose 24%, while net profit increased 33%. The sequential improvement was supported by higher commodity prices for phosphate and aluminium and increased aluminium and gold sales volumes.

Maaden also benefited from higher finance income, lower finance costs and a higher share of profits from equity-accounted investments. 

The latter was helped by the absence of a one-off impairment recorded by Manara Minerals Investment Company in the previous quarter on its investment in Vale Base Metals Ltd, as well as higher profit from Aluminium Bahrain.

These gains were partly offset by lower other operating income in the phosphate business, following the recognition of 375 million riyals in one-off insurance proceeds in the previous quarter.

For the first half, Maaden has recorded a net profit of SAR3.81 billion, up 10% from SAR3.47 billion a year earlier. Revenue increased 10% to SAR19.73 billion.

First-half profitability was supported by higher commodity prices across all business units, other higher operating income and lower finance costs, as well as increased contributions from equity-accounted investments including Aluminium Bahrain and Maaden Barrick Copper Co.

According to Maaden, the higher costs in the phosphate business, lower sales volumes and increased exploration expenditure partly offset the improvement.

Shareholders' equity, after deducting minority interests, stood at SAR65.23 billion at the end of the period, up from SAR57.38 billion a year earlier. Earnings per share for the first half stood at 0.98 riyal, compared with 0.91 riyal a year earlier.-TradeArabia News Service