Sulfur costs push Ma'aden quarterly profit down 24% despite record revenue

Summary

• Ma'aden's third-quarter net profit fell 23.7% to 1,682.3 million riyals even as revenue rose 11.3%.
• The miner blamed higher phosphate production costs, led by sulfur, and zero ammonia export sales in the quarter.
• Nine-month profit slipped only 3.2%, cushioned by a one-off 375 million riyal insurance gain.

The latest

Higher sulfur and raw-material costs wiped nearly a quarter off Ma'aden's third-quarter earnings, with net profit attributable to shareholders falling to 1,682.3 million riyals from 2,205.1 million a year earlier. Revenue still climbed 11.3% to 11,140.3 million riyals on stronger selling prices across all business units. The Saudi miner's shares traded at 57.9 riyals at the time of the disclosure, down 0.6%.

Details

• The quarter: Net profit attributable to shareholders came in at 1,682.3 million riyals for the third quarter of 2026, down 23.7% year on year and 22.7% below the second quarter's 2,175.3 million. Total comprehensive income fell further, dropping 31.3% to 1,662.3 million riyals.
• Margin squeeze: Gross profit fell 29.5% to 2,789.4 million riyals and operating profit dropped 46.5% to 1,569.9 million, according to the Tadawul filing. Both declines outpaced the revenue gain, pointing to cost rather than demand as the driver of the quarter.
• The cost driver: Ma'aden attributed the gross profit decline mainly to higher cost of sales in the phosphate unit, citing supply-chain and raw-material pressures and specifically rising sulfur costs. Sulfur is a core input for phosphate fertilizer production through sulfuric acid.
• Ammonia gap: The company said it recorded no ammonia export sales during the quarter, hitting both phosphate volumes and profitability. The filing did not say when ammonia exports would resume or what caused the shipment gap.
• What grew: Selling prices rose across every business unit, and gold sales volumes increased, partly offsetting the phosphate drag. Revenue of 11,140.3 million riyals was also 1.8% above the previous quarter, the company said.
• Nine months: Revenue for the nine months to September 30, 2026 rose 10.5% to 30,866.1 million riyals, while net profit attributable to shareholders eased 3.2% to 5,493.4 million. Earnings per share slipped to 1.42 riyals from 1.48.
• One-off support: Nine-month results were cushioned by a one-time insurance income recognition of 375 million riyals in the phosphate unit, lower finance costs, and a higher share of profit from Aluminium Bahrain and Ma'aden Barrick Copper, according to the disclosure.
• The offset: Manara Minerals recorded a one-time impairment on its investment in Vale, partially cancelling out those gains. Ma'aden also flagged higher exploration spending tied to its long-term growth and resource development strategy, alongside lower finance income and higher zakat, income tax and royalty charges.
• Balance sheet: Total equity excluding non-controlling interests rose 11.9% to 66,912.4 million riyals from 59,821.1 million a year earlier. The external auditor issued an unmodified opinion with no qualifications, and comparative figures were not reclassified.

Background

Ma'aden is Saudi Arabia's state-backed mining champion and the largest listed miner in the Gulf, operating across phosphate, aluminium and gold. Phosphate fertilizer is its largest volume business, leaving earnings exposed to swings in sulfur and ammonia markets.

Between the lines

The gap between a 10.5% nine-month revenue rise and a 12.8% gross profit decline shows the pressure sits entirely on the cost side, not on demand or pricing. The nine-month profit drop of just 3.2% also leans on items outside core operations: a 375 million riyal insurance recognition and equity-accounted gains. Strip those out and the underlying squeeze looks closer to the quarterly picture.

What's next

Watch whether ammonia export sales resume in the fourth quarter, the direction of sulfur input costs, and whether gold volume growth keeps offsetting phosphate margin pressure in Ma'aden's full-year 2026 results.

Source: Saudi Exchange (Tadawul)