Ma’aden slides into net losses in 3Q 2023: Saudi Arabian Mining Company Ma’aden reported SAR 83 mn in net losses in the third quarter of this year — a 104% fall by our calculations — compared to a net profit of SAR 2.1 bn in the 3Q 2002, according to a disclosure to Tadawul. Its revenues dropped by 38% y-o-y from 10 bn to 6.2 bn in 3Q.

How do the numbers fair against 2Q’s performance? Ma’aden’s net losses were down 124% by our math compared to last quarter’s SAR 351 mn net income. Its revenues during the three months ending in September dropped 10.6% y-o-y to SAR 6.2 bn, down from SAR 7 bn from 2Q.

What’s behind these numbers? The significant declines are mainly due to sales falling by 3.8 bn y-o-y (and SAR 740 mn q-o-q), which Ma’aden attributes to decreasing commodity market prices of all business segments, excluding its base metal and new minerals segments. Ma’aden said in its disclosure that the losses were partially offset by a decrease in cost of sales due to lower raw material prices and severance fees which were inflated during the previous quarter of the current year. Ma’adan also had a higher income from time deposit and lower income taxes and zakat in this nine-month period.