Energy reforms to hit Maaden’s 2016 profit by SR120m

Energy reforms to hit Maaden’s 2016 profit by SR120m
Updated 03 January 2016

Energy reforms to hit Maaden’s 2016 profit by SR120m

Energy reforms to hit Maaden’s 2016 profit by SR120m

JEDDAH: Saudi Arabian Mining Co. (Maaden) said that changes to energy and gas feedstock prices announced by the government last week would reduce its profit in 2016 by around SR120 million($32 million).
The company said in the bourse filing that it would continue implementing its strategy to boost productivity and reduce costs to manage changes in commodity markets.
Abdullah Abdul Mohsin Al-Khodari and Sons, meanwhile, forecast changes to the Kingdom’s electricity and energy prices would raise its costs by SR44.3 million ($11.81 million) between 2016 and 2020.
The builder is the latest Riyadh-listed company to reveal the likely impact of higher prices on its operations.
Al-Khodari forecast its operational costs would increase by SR22.1 million in 2016, SR12.4 million in 2017, SR8.5 million in 2018 and by less than SR1 million in both 2019 and 2020, according to a bourse statement.
Last week, the government announced plans to shrink the budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenues from taxes and privatization.