| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
15,670,129
|
-
|
-
|
83,595,531
|
-
|
| Gross profit (loss) |
497,593,798
|
533,621,874
|
-
|
509,681,927
|
-
|
| Operational profit (loss) |
225,034,704
|
189,587,643
|
18.7
|
306,582,680
|
-
|
| All figures are in Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
400,639,080
|
605,173,945
|
- |
| Gross profit (loss) |
2,046,272,753
|
2,439,044,202
|
- |
| Operational profit (loss) |
1,193,856,409
|
1,304,540,642
|
- |
| Earning or loss per share, Riyals |
0.34
|
0.52
|
- |
| All figures are in Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | Sales declined by 11% compared to the same quarter last year. The decline is mainly attributed to the lower prices of ammonium phosphate fertilizers (APF) and ammonia which offset the favorable effect of the increase in the average realized prices of aluminium and gold, and the increase in sales volumes of ammonia, aluminium and gold. The impact on profitability from the decline in sales was partially offset by a 12% reduction in cost of sales as a result of lower raw material costs and the group ongoing initiatives to reduce operating costs, which also led to a reduction of 59% in exploration and technical services expenses, a 37% decline in selling, marketing and logistic expenses and 18% drop in general and administrative expenses. Net income was reduced by the increase in the provision for zakat by 135%, and an increase in finance charges of 140% due to an increase in SIBOR/LIBOR, and also the increase in the write-off of plants and equipment. Net income benefited from an increase in income from short term investments of 477%, decreased losses in the jointly controlled entities (SAMAPCO and MBCC) of 93%, and an increase in other income of 127%. |
| Reasons of increase (decrease) for period compared with same period last year | Compared to the previous period, sales revenues were lower by 13% mainly due to lower prices for all of our major products except gold. The decline in sales revenues was largely offset by higher sales volumes in ammonium phosphate fertilizers (APF), ammonia and gold. As a result of the ongoing cost reduction initiatives, cost of sales declined by 12%; similarly, selling, marketing and logistic expenses, general and administrative expenses, and exploration and technical services expenses declined by 23%, 26% and 65% respectively from the previous period. Net income benefited from an increase in income from short term investments of 326%, and a decrease in the loss in the jointly controlled entities (SAMAPCO and MBCC) of 19%, but was reduced by an increase in the write-off of plants and equipment of 450%, an increase in the zakat and income tax expense of 69%, an increase in finance charges of 83% due to an increase in SIBOR/LIBOR and decrease in other income by 41%. |
| Reasons of increase (decrease) for quarter compared with previous quarter | Sales increased by 2% due to the increase in the volume sold of all products, despite the unfavorable effect of a decrease in the average realized prices of ammonium phosphate fertilizers (APF), ammonia and gold. Cost of sales increased by 4% due to an increase of sales, selling, marketing and logistic expenses of 16%, increases in general and administrative expenses and exploration and technical services expenses of 25% and 35% respectively from the previous period, and an increase in the write-off of plants and equipment of 216%. Net income reduced mainly on account of 27% higher finance charges due to an increase in SIBOR and LIBOR, and an increase in the provision for zakat of 563%, despite a decrease in the loss in jointly controlled entities (SAMAPCO and MBCC) of 91%, and increase in other income. |
| Reclassifications in quarterly financial results | Certain comparative figures of the previous year have been reclassified, wherever necessary, to conform with the current years presentation. Such reclassifications did not affect either the net worth or the net income of the Group for the previous or current year. |
| Other notes | Sales revenues for the quarter ended 31 December, 2016 amounted to SR 2,370,852,281 a decrease of 11% compared to SR 2,659,377,435 for same quarter last year. The sales for the 12 months ended 31 December, 2016 amounted to SR 9,506,241,216 a decrease of 13% compared to SR 10,956,125,938 for the year ended 31 December 2015. The total equity attributable to shareholders of the parent company as at 31 December, 2016 amounted to SR 27,675,047,450 an increase of 1.4% as compared to SR 27,298,408,370 as at 31 December, 2015. The pricing environment for Maadens key products was very challenging in 2016 and in response the Company has focused on operational excellence and the optimization of costs. These efforts have led to significant improvements in our business across the portfolio. In 2016, Maaden produced and sold 2,723K tonnes and 2,676k tonnes respectively of ammonium phosphate fertilizers (APF), an increase of 3% and 2% respectively as compared to previous year. The ammonia plant operated above its rated capacity, and produced 1,229k tonnes of ammonia and sold externally 715k tonnes, an increase in production and sales of 15% and 55% respectively as compared to the previous year. During the year, Maaden produced 871K tonnes of aluminium, an increase of 4% as compared to the previous year. This increase in production was the result of increased efficiency and additional metal volumes from our can recycling facility. In 2016, Maaden sold 503K tonnes of primary aluminium externally, a decrease of 1%, due to the increased consumption of primary aluminium in the production of flat rolled products. In gold, production and sales in 2016 increased by 38% to 225k ounces which was achieved through higher throughputs from existing mines as well as volumes from our new mine, Ad Duwyahi, which started its commercial operation on 1 April 2016. Attached is a summary report of the financial results and latest developments in the group. The consolidated financial statements will be available on Maaden website and through Maaden Investor Relations application for smart devices post being published on Tadawul website. http://www.maaden.com.sa/en/investor/investor |
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