Saudi mining companies turn profitable in the third quarter, and the stock closes higher.

The Saudi Arabian Mining Company (Ma'aden) issued a statement on the Saudi Stock Exchange (Tadawul) on Wednesday, reporting its financial performance for the third quarter and the first nine months of the year.

In the third quarter, Ma'aden shifted to profitability with a net profit—after tax and zakat—amounting to approximately 971.48 million riyals, compared to losses of 83.44 million riyals incurred by the company in the same period last year.

The Saudi company explained that the increase in net profits was due to higher prices and sales volume, along with a decrease in depreciation expenses.

Similarly, net profit during the first nine months of the year jumped by 333.41%, reaching 2.977 billion riyals, compared to 686.924 million riyals achieved by Ma'aden in the same period of 2023.

At the same time, Ma'aden's earnings per share increased to 0.81 riyals, up from 0.19 riyals recorded in the same period last year.

This is attributed to an increase in gross profit by 2.874 million riyals, or 70%, driven by higher sales prices and volume, a decrease in raw material costs, and a reduction in depreciation expenses, alongside the impact of one-time charges related to industrial facilities incurred last year.

As a result, Ma'aden's stock (TADAWUL: 1211) closed today’s trading up by 4.07%, finishing the session at 56.2 riyals.