World Economy

Mining Co. Profit Down 35%

Mining Co. Profit Down 35%Mining Co. Profit Down 35%

Saudi Arabian Mining Company, Ma’aden, the largest miner in Persian Gulf Arab countries, posted a 35.3% fall in first-quarter net profit on Sunday, but still beat analysts’ forecasts, Yahoo reported. The firm made a net profit 168.9 million Saudi riyals ($46 million) in the three months to March 31, it said in a bourse statement. This compares with a profit of 260.9 million riyals in the corresponding period of 2015. The average estimate of three analysts polled by Reuters was for a quarterly profit of 1.13 million riyals. It attributed the results to a 17% drop in revenues because of lower commodity prices for all its products–year on year, average prices for ammonia and diammonium phosphate dropped 30% and by 25% for aluminum, where overall sales also fell. This negative impact was partly offset by a 16% reduction in cost of sales through lower raw material costs and the impact of an ongoing initiative to cut operating expenses.