RIYADH: Saudi Arabian Mining Co., the largest multi-commodity mining and metals company in the Middle East, on Monday reported a surge of 87 percent in its net profit for the year 2022 driven by higher sales and higher commodity prices.

The listed company, also known as Ma’aden, posted SR12.13 billion ($3.23 billion) in net profit, it said in a press release. Earnings before interest, tax, depreciation and amortization increased 51 percent at the end of the reporting period to more than SR16.68 billion.

Following the launch of the company’s 2040 strategy for growth and the initiation of a transformation program, Ma’aden has reported record sales of SR40.28 billion, up 50 percent, driven by higher commodity prices and increased efficiencies across business units. Cash generated from operations jumped 71 percent on an annual basis to SR16.21 billion.

Ma’aden is also making progress on its health and safety record, recording its safest year through further progress in the downward trajectory of the All Injuries Frequency Rate metric to 0.13.

“Ma’aden delivered its safest and most profitable year ever. The transformation initiated a year ago is showing results. Financially, sales and profits grew by 50 percent and 87 percent respectively with working capital improvements contributing to record cash generation levels and the further strengthening of our balance sheet,” said Robert Wilt, Ma’aden CEO, commenting on the financial results of the mining giant. 

“We are investing in the next generation of low-cost, long-life projects, improving exploration and project delivery capabilities, and putting health, safety, and the well-being of our people at the center of our plans for the future,” he added. 

“We’ve also made significant progress towards our ambitious growth targets following the commissioning of Ammonia 3, the awarding of the EPCM contract for Phosphate 3, Mansourah-Massarah nearing commercial production and over 2 million ounces of gold reserves added to our portfolio,” the official said.

Long-term borrowing and net debt declined by 12 percent and 34 percent, respectively, from December 2021. The company’s fourth quarter net profit, however, declined by 53 percent to SR1.27 billion riyals, dragged down by higher depreciation, taxes and finance charges as a result of higher interest rates globally.

Revenue for the three-month period, however, increased to SR9.47 billion, up 11 percent year-on-year, as sales volumes rose.

“We are focused on sustainable growth and financial discipline supported by a capital allocation framework set to deliver long-term shareholder value,” the Ma’aden chief said.

Ma’aden is also looking to strengthen its exploration capabilities.