Saudi Arabian Mining Co. — Interim / Quarterly Report 2016

Apr 17, 2016

Saudi Arabian Mining Company announces the interim financial results for the Quarter ended on 31/03/2016 (Three Months)

1211 · 17/04/2016 15:32:46 · Announcement #42097 · View on Saudi Exchange

Saudi Arabian Mining Company announces the interim financial results for the Quarter ended on 31/03/2016 (Three Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	168,921,000	260,927,568	-	-	-
Gross profit (loss)	492,859,363	615,809,484	-	533,621,574	-
Operational profit (loss)	302,602,478	387,044,341	-	181,530,218	66.7
Earning or loss per share, Riyals	0.14	0.22	-	-	-
All figures are in Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	Revenues declined by 17% due to lower commodity prices for all products and decrease in aluminum sales volume. The average realized prices of DAP and ammonia declined by approximately 30%, whereas aluminum prices (including premium) declined by around 25% compared to the same quarter of last year. The decline in commodity prices was partially offset by higher sales volumes of ammonia, DAP and gold. The impact on profitability from the decline in revenues was partly offset by a 16% reduction in cost of sales through lower raw material costs and the effects of the companys ongoing initiative to reduce operating costs. This initiative led to a reduction in exploration and technical services expenses of 65% and a 10% drop in general and administrative expenses. Net income also benefited from an increase in income from short term investments and other income, but was reduced by an increase in finance charges and the increased share of losses in a jointly controlled entity.
Reasons of increase (decrease) for quarter compared with previous quarter	Compared to Q4-2015, revenues in the first quarter of 2016 were lower by 15% mainly due to 24% lower prices for DAP and ammonia. The average realized prices for aluminium and gold were slightly higher compared to the previous quarter. Revenues also benefited from higher sales of ammonia and aluminium. Cost of sales remained broadly flat despite the higher production volumes whilst selling, marketing and logistic expenses, general and administrative expenses, and exploration and technical services expenses all declined by 50%, 33% and 72% respectively from the previous quarter as a result of the ongoing cost reduction initiative. Net income benefited from an increase in income from short term investments and other income, a reduction in the loss in the jointly controlled entity and a decrease in the provision for zakat, but was reduced by an increase in finance charges.
Reclassifications in quarterly financial results	Certain comparative figures of the previous quarter / year have been reclassified, wherever necessary, to conform with the current quarters presentation. Such reclassifications did not affect either the net worth or the net income of the Group for the previous quarter / year.

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