The Saudi Arabian Mining Company (Ma’aden) Tuesday reported second-quarter net income of SR128 million ($ 34.13 million), more than double its profit for the prior-year period.

Estimated net income for the first six months of 2012 amounted to SR374 million, compared to SR106 million for the same period last year, an increase of 253 percent, the company said in a statement to the Saudi bourse.

The increase in the estimated net profit could be attributed to the beginning of commercial production of ammonia and DAP for Ma’aden Phosphate Company, an increase in the average price of gold sold as well as a rise in quantity of gold sold.

It added that the decrease in the net profit compared to Q1 was due to the lower quantity of gold sold, the reduction in DAP prices and higher Zakat provisions.

In March, the company said it plans to invest SR26bn in its projects in Ras Al Khair and Waad Al Shamal, according to CEO Khalid Bin Saleh Al Mudaifer.
The company plans to invest SR21 billion to develop facilities for phosphate and other related products in Waad Al Shamal, and SR5 billion in Ras Al Khair.

The estimated net income attributable to shareholders of the parent company for the first quarter which ended March 31 amounted to SR246 million, an increase of 459 percent compared to the actual net income for the same quarter of 2011 (SR44 million).

The estimated gross profit for the first quarter ended amounted to SR458 million, an increase of 258 percent compared to the actual gross profit for the same quarter in 2011 (SR128 million).

The estimated operating profit for the first quarter amounted to SR362 million, an increase of 878 percent compared to the actual operating profit for the same quarter of 2011 (SR37 million), statement on Tadawul said.
The estimated basic and diluted earnings per share (EPS) for the first three months of the fiscal year amounted to SR0.27 compared to the actual basic and diluted earnings per share of SR0.05 for the same quarter of 2011.