RIYADH: A debt of SR3 billion ($800 million) was repaid by Saudi Arabian Mining Co., also known as Ma’aden, in what was its largest ever repayment ever as part of a strategy to improve the firm’s capital performance.
According to a company press release, the repayment was carried out by its subsidiary Ma’aden Wa’ad Al-Shamal Phosphate Co.
Located north of Saudi Arabia, MWSPC is one of the world’s largest phosphate production complexes, contributing to 50 percent of Ma’aden’s overall phosphate production.
The release stated that the early repayment, representing about 7 percent of Ma’aden’s consolidated debt, was a strategic move aimed at reducing finance costs and is part of the company’s deleveraging strategy.
This prepayment also aligns with Ma’aden’s recently announced capital allocation framework, reinforcing its commitment to disciplined and sustainable capital management that supports its ambitious vision and growth plans.
Launched in 2020, Ma’aden Transformation Program has been looking at new ways of working toward delivering value for customers, investors and stakeholders.
Since then, the company has already saved hundreds of millions of dollars by applying these cost management initiatives.
Ma’aden’s phosphate business has seen significant growth over the years, becoming the world’s second-largest exporter of phosphate fertilizer in just a decade.
In February, the metals and mining behemoth also reported a surge of 87 percent in its net profits for 2022, driven by higher sales and higher commodity prices.
It posted SR12.13 billion in net profit at the time.
Earnings before interest, tax, depreciation and amortization increased 51 percent at the end of the reporting period to more than SR16.68 billion.
It also booked record sales of SR40.28 billion, up 50 percent.
Long-term borrowing and net debt declined by 12 percent and 34 percent, respectively, from December 2021.
However, the company’s fourth-quarter net profit declined by 53 percent to SR1.27 billion riyals, dragged down by higher depreciation, taxes and finance charges due to higher interest rates globally.
Ma’aden also made progress on its health and safety record, recording its safest year through further improvement in the downward trajectory of the all injuries frequency rate metric.
The AIFR is the number of injuries per 1 million hours worked. Companies use the measure to evaluate their health and safety performance.