| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
275,611,289
|
194,303,024
|
41.85
|
-
|
-
|
| Gross profit (loss) |
925,643,686
|
494,856,765
|
87.05
|
424,705,831
|
117.95
|
| Operational profit (loss) |
722,176,995
|
337,393,165
|
114.05
|
-
|
-
|
| Earning or loss per share, Riyals |
0.23
|
0.16
|
-
|
-
|
-
|
| All figures are in Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The reasons for the increase in net profit are as follows: Sales increased by 20% due to the increase in sales volume of all products, and the increase of the average realized prices of aluminium by 18% and gold by 3%, compared to the same quarter last year. The increase was also due to the group ongoing cost reduction initiatives, which led to the decrease in selling, marketing and logistic expenses by 36%, and the share profit from the jointly controlled entity (Maaden Barrick Copper Company). Net profit was negatively affected by a decrease in the average realized prices for ammonium phosphate fertilizer (APF), an increase in the general and administrative expenses by 103%, an increase in other expenses, an increase in write-off of plant and equipment, an increase in finance charges by 131% due to the commercialisation of capital work-in-progress projects and the increase in SIBOR/LIBOR and a reduction from the income from short term investments by 16%. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The reasons for the increase in net profit are as follows: Compared to Q4-2016, sales in the first quarter of 2017 increased by 14% due to the increase in sales volume of ammonia, alumina and gold and the increase in the average realized price of all products. The increase was also due to the company ongoing cost reduction initiatives, that resulted in a decrease in cost of sales by 8%, a decrease in selling, marketing and logistic expenses by 50% and a decrease in exploration and technical service expenses 37%. Net profit was negatively affected by an increase in other expenses, increase in finance charges by 26% due to the commercialisation of capital work-in-progress projects and the increase in SIBOR/LIBOR and a reduction from the income from time deposits by 41%. Due to the adoption of IFRS reporting standards, impairment of certain plant and equipment was recorded on December 2016, which in turn, negatively impacted 2016 fourth quarter profit with the amount of SAR 566 million. As a result, losses of SAR 483,709,933 were reported for the 4th quarter to net profit attributed to the shareholder of parent company. |
| Reclassifications in quarterly financial results | 2016 comparative figures have been restated to comply with the implementation of IFRS reporting. |
| Other notes | Sales revenues for the quarter ended March 31, 2017 amounted to SR 2,717,432,488 an increase of 20% compared to SR 2,270,431,826 for same quarter last year. The total equity attributable to shareholders of the parent company as at March 31, 2017 amounted to SR 25,617,625,093 an increase of 1% as compared to SR 25,544,619,844 as at March 31, 2016. The total comprehensive income for the quarter ended March 31, 2017 amounted to SR 340,530,137 an increase of 70% compare to SR 200,489,011 for same quarter last year, and (641,321,008 ) for the previous quarter. Maaden reported a strong profitability during the first quarter of 2017 from the increased sales revenue and by maintaining its cost of sales even though Maaden increased sales volumes in all its commodities. This was possible as a result of the company ongoing cost reduction initiatives, which led to a drop of 36% in selling, marketing and logistic expenses and keeping exploration and technical services expenses flat. Our profitability was also impacted with increase in financial charges by 131% due to the non-capitalisation of financial charges with respect to capital work-in-progress projects which have entered commercial operation since the first quarter in 2016, namely the Ad Duwayhi gold mine and the bauxite mine and alumina refinery in 2016 and the second ammonia plant at Ras Al-Khair in 2017. Overall due to ongoing cost optimisations and improved commodity price environments we generated cash flow from operating activities of SAR 857 million, which also reflected strong all-round operating performance and working capital optimisation. We are continuing to make good progress against Maaden strategic priority of increasing cash flow. 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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