Saudi Maaden Says 2Q Net Pft Doubles On Higher Gold Prices, Volume

Sunday, Jul 17, 2011

RIYADH (Zawya Dow Jones)--Saudi Arabian Mining Co., better known as Maaden, said Sunday its second-quarter net profit doubled to 62.5 million Saudi riyals ($16.7 million) compared with the corresponding period a year ago, helped by higher gold prices and sales.

Maaden's second-quarter net profit beat analyst expectations at investment bank Credit Suisse, which had forecast a SAR43 million effort, and at Riyadh-based Al Rajhi Capital, which had penciled in SAR39 million.

The rise in quarterly profit is due to "an increase in the average realized prices of gold, an increase in gold ounces sold; and lower zakat provision. The net income improvement was achieved despite the low return on investment deposits of an Islamic murabaha," Maaden said in a statement posted on the Saudi bourse website.

First-half earnings per share for first quarter stood at SAR0.11 compared with SAR0.06 in the year-earlier period, while second-quarter operating profit soared to SAR72.3 million versus SAR39.2 million a year ago, Maaden said.

Maaden's shares closed down 1.13% at SAR26.30 on the Riyadh bourse Sunday.

-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com

(END) Dow Jones Newswires

17-07-11 1357GMT