Maaden posts SR370.8m net profit

Updated 15 July 2014
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Maaden posts SR370.8m net profit

DUBAI: Saudi Arabian Mining Co. (Maaden) posted a higher-than-expected nine-fold rise in net profit in the second quarter, recovering from last year's poor performance as sales increased and aluminum prices rose.
The miner made a net SR370.8 million ($98.9 million) in the three months to June 30, compared with SR40.98 million in the year-earlier period, it said in a bourse filing on Tuesday.
Earnings were expected to improve because of a slump which Maaden suffered in the second quarter of 2013, due to a plant shutdown and lower gold prices. But its performance exceeded the expectations of all four analysts polled by Reuters, who had on average forecast 183.8 million.
Maaden is seen as a key driver of Saudi Arabia's economic diversification away from oil exports, with its $9 billion Waad Al-Shimal project expected to produce up to 16 million tons a year of numerous phosphate products when it comes on line in late 2016.
The company cited increased sales across its product range as well as higher aluminum prices for the profit increase, which helped offset lower prices for ammonia and one of its fertilizer products.
Maaden gave no further detail. Saudi companies usually issue brief earnings statements early in the reporting period before publishing more information later.
The profit increase reverses a broadly negative earnings run for the company, which had reported declining profits in four of the previous five quarters - with the outlying quarter positive largely due to a one-off gain on a joint venture.
The company signed $5 billion of loan financing for the Waad Al-Shimal scheme last month and is set to use much of the proceeds of a $1.5 billion rights issue, plans for which were announced in May, to fund the project.


‘Don’t be too optimistic’: Huawei employees fret at US ban

Updated 26 May 2019
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‘Don’t be too optimistic’: Huawei employees fret at US ban

  • This week Google, whose Android operating system powers most of the world’s smartphones, said it would cut ties with Huawei
  • Another critical partner, ARM Holdings, said it was complying with the US restrictions

BEIJING: While Huawei’s founder brushes aside a US ban against his company, the telecom giant’s employees have been less sanguine, confessing fears for their future in online chat rooms.
Huawei CEO Ren Zhengfei declared this week the company has a hoard of microchips and the ability to make its own in order to withstand a potentially crippling US ban on using American components and software in its products.
“If you really want to know what’s going on with us, you can visit our Xinsheng Community,” Ren told Chinese media, alluding to Huawei’s internal forum partially open to viewers outside the company.
But a peek into Xinsheng shows his words have not reassured everyone within the Shenzhen-based company.
“During difficult times, what should we do as individuals?” posted an employee under the handle Xiao Feng on Thursday.
“At home reduce your debts and maintain enough cash,” Xiao Feng wrote.
“Make a plan for your financial assets and don’t be overly optimistic about your remuneration and income.”
This week Google, whose Android operating system powers most of the world’s smartphones, said it would cut ties with Huawei as a result of the ban.
Another critical partner, ARM Holdings — a British designer of semiconductors owned by Japanese group Softbank — said it was complying with the US restrictions.
“On its own Huawei can’t resolve this problem, we need to seek support from government policy,” one unnamed employee wrote last week, in a post that received dozens of likes and replies.
The employee outlined a plan for China to block off its smartphone market from all American components much in the same way Beijing fostered its Internet tech giants behind a “Great Firewall” that keeps out Google, Facebook, Twitter and dozens of other foreign companies.
“Our domestic market is big enough, we can use this opportunity to build up domestic suppliers and our ecosystem,” the employee wrote.
For his part, Ren advocated the opposite response in his interview with Chinese media.
“We should not promote populism; populism is detrimental to the country,” he said, noting that his family uses Apple products.
Other employees strategized ways to circumvent the US ban.
One advocated turning to Alibaba’s e-commerce platform Taobao to buy the needed components. Another dangled the prospect of setting up dozens of new companies to make purchases from US suppliers.
Many denounced the US and proposed China ban McDonald’s, Coca-Cola and all-American movies and TV shows.
“First time posting under my real name: we must do our jobs well, advance and retreat with our company,” said an employee named Xu Jin.
The tech ban caps months of US effort to isolate Huawei, whose equipment Washington fears could be used as a Trojan horse by Chinese intelligence services.
Still, last week Trump indicated he was willing to include a fix for Huawei in a trade deal that the two economic giants have struggled to seal and US officials issued a 90-day reprieve on the ban.
In Xinsheng, an employee with the handle Youxin lamented: “I want to advance and retreat alongside the company, but then my boss told me to pack up and go,” followed by two sad-face emoticons.