Ma'aden aluminium earnings rise on stronger alumina and FRP sales

Ma'aden aluminium

Ma'aden aluminium earnings improved in the third quarter as higher alumina sales volumes outweighed weaker benchmark prices. The Ma'aden aluminium earnings uplift came mainly from alumina and flat-rolled products, even with softer alumina pricing. As a result, Ma'aden aluminium earnings underline the resilience of Saudi downstream metals against a volatile global market.

Alumina sales volumes drive EBITDA growth

Ma'aden reported third-quarter aluminium segment EBITDA of SR755mn, up 16.7pc year on year on solid revenue growth. Sales rose 12.5pc to SR2.8bn, helped by a sharp increase in third-party alumina sales volumes. Alumina production was broadly steady at 486,000t, just 2,000t lower than a year earlier.

However, alumina sales volumes jumped 141pc to 135,000t, signalling a deliberate shift toward monetising surplus material. Alumina prices averaged $385/t in the quarter, down 14.6pc year on year, which capped margin upside. Even so, higher volumes and integrated smelting helped protect profitability along the value chain.

For the first nine months, alumina output held near 1.43mn t, while alumina sales rose 25pc to 266,000t. Prices averaged $431/t, up 5pc, supporting cumulative EBITDA, which still rose 3pc despite a weaker second quarter.

Flat-rolled products underpin premium pricing strategy

Refined aluminium output was flat at 246,000t in the third quarter, highlighting stable smelter operations. Primary aluminium sales volumes increased 4pc to 156,000t, even as average prices dipped 1.1pc to $2,734/t. Over nine months, aluminium output edged up 1pc to 741,000t, while sales slipped 4pc to 435,000t, reflecting some inventory and mix effects.

Flat-rolled product (FRP) performance continued to strengthen Ma'aden aluminium earnings through premium pricing. FRP output reached 76,000t in the quarter, only slightly above last year, but nine-month production climbed 20pc to 231,000t. FRP sales rose to 75,000t in the third quarter and 226,000t year to date, up 15pc. Average FRP prices increased 5.6pc in the quarter to $3,435/t, and 8pc to $3,677/t over nine months.

Therefore, the growing FRP share supports margin resilience versus pure primary metal exposure. Ma'aden has kept full-year production guidance unchanged, signalling operational confidence across alumina, smelting and downstream rolling. This integrated model positions the company well as regional demand for automotive, packaging and industrial aluminium continues to expand.

The Metalnomist Commentary

Ma'aden’s third-quarter numbers confirm that value-added products now anchor profitability more than headline aluminium prices. The combination of integrated alumina, primary metal and FRP capacity provides a structural buffer against market volatility. Investors should watch how Ma'aden balances export volumes, domestic demand and future FRP upgrades as GCC industrialisation accelerates.