More Saudi companies painted gloomy earnings in the second quarter on Monday. Saudi Arabian Mining Co (Maaden) reduced losses by 59 percent in the second quarter in 2009 but posted profit on operational levels as gold revenues rose, the firm said. Maaden posted a net loss of SR7 million ($1.87 million) in the three months to June 30, compared with a loss of 16 million riyals in the same period last year, Maaden said in a statement on the Saudi bourse website. The company, a major mining player in the Middle East which floated in July 2008, attributed the loss to provisions for the Islamic tax of Zakat. Operational profit for the second quarter came in at SR29 million compared with a loss of SR32 million for the same period last year, due to rising gold revenues. Last week the company said it would develop new mines and explore others to compensate for declining gold output. Maaden produced 146,000 ounces of gold in 2008, up from 143,000 ounces in 2007. The company plans to start production at its $3 billion phosphate and fertilizers plant, a joint venture with Saudi Basic Industries Corp, in 2010. In May, Maaden said it would continue with its plan to develop a 740,000 ton-per-year aluminum smelter project after Rio Tinto Alcan (RIO.L) abandoned its 49 percent stake. Maaden reduced the cost of the project by 20 percent to $8 billion and is open to an investment stake of 49 percent Saudi Electricity Co (SEC), the Gulf's largest utility by market value, said its net profit fell by 8 percent in the second quarter on higher costs linked to new projects. SEC made SR715 million ($190.7 million) in the three months to June 30, 2009 compared with SR781 million in the year-earlier period, it said in a statement on the bourse's website. Operating profit fell by 3 percent to SR622 million in the quarter. In the first quarter it posted a net loss of SR771 million, resulting in a loss per share of SR0.014 in the first six months versus earnings per share of SR0.002 in the same period a year ago. I SEC is currently carrying out projects worth SR75 billion to be completed within three years to meet rising demand for power in the Kingdom which plans to spend more $400 billion to upgrade its infrastructure. Last month, the company raised some SR7 billion with Sukuk to fund its expansion. The Dammam-based Mohammad Al-Mojil Group (MMG) said its second quarter net profit plunged 94 percent to SR11.6 million Saudi ($3.1 million), compared with SR187 million in year earlier period, as the company increased provisions for outstanding payments due from its clients. Net profit for the first six months of 2009 declined 94.8 percent to SR18.8 million, while earnings per share for the same period fell to SR0.14 from SR2.64 a year earlier, the company said. The company, which is primarily involved in the construction, contracting, maintenance and supplying of equipment for the petrochemicals, oil and gas industries, posted a 96 percent decline in net income in the first quarter of 2009. Mojil said it is owed SR371.2 million from clients as of June 30, 2009, after it received SR259.5 million in settlement on outstanding payments. The company took a SR87.9 million provision charge this quarter, but said the charge may increase or decrease as negotiations with its clients proceed. Revenue declined in the second quarter as the company neared completion on some projects and clients scaled back their plans on existing contracts, Mojil said in the statement. Investors drove down shares of Mojil 5.25 percent on Sunday to close at SR29.00. The company raised SR2.1 billion in its initial offering in May 2008 and sold its shares for SR70. Rabigh Refining and Petrochemical Co (PetroRabigh) said on Monday it had a net loss of SR236 million ($62.93 million) in the second quarter compared to a SR115 million loss in the same period last year, the firm said in a statement. The joint venture of Saudi Aramco and Japan's Sumitomo Chemical reported a net loss of SR115 million in the same period a year earlier, it said in a statement on the bourse website. Aramco-Sumitomo JV's loss doubles in Q2 The firm also said Chief Executive Saad Al-Dosary had resigned after his term was over and was replaced by Ziyad Allaban. It gave no more details. PetroRabigh's operational losses rose in the second quarter by 90 percent to SR240 million, compared to SR126 million in the same period last year.
