The shares of United Mining Industries "United Mining" witnessed a sharp decline during trading on Monday in the Saudi stock market, following the announcement of its preliminary financial results for the period ending June 30, 2025, which showed clear pressure on the company's profits amid declining revenues and rising operating costs.
United Mining announced a 16% decline in its net profits in the first half of the current year, reaching 9.95 million riyals, compared to profits of 11.8 million riyals in the comparable period of the previous year. This decline reflects the ongoing challenges facing the mining sector and related industries amid changes in the local and global markets.
The company clarified in an official statement on the "Tadawul Saudi" website that the main reason behind the profit decline is the 18.04% decrease in total revenues, which pressured profit levels, alongside rising operating costs and a drop in operating profit margin.
United Mining also confirmed that the decline in sales during the first half was a result of the decrease in average product prices, alongside changes in the sales mix compared to the same period last year. The company believes that these factors directly reflected on the financial results and led to a reduction in returns.
In the trading market, the United Mining stock suffered strong losses of 9.83%, equivalent to 4.84 riyals per share, trading at a level of 44.40 riyals on the Saudi stock exchange, which placed the stock under noticeable selling pressure from investors.
Analysts believe that the results of United Mining may prompt the company to reevaluate its operational strategy in the upcoming period, especially regarding cost reduction and enhancing production efficiency. The company may also resort to diversifying its product mix and improving pricing to cope with market fluctuations and maintain its competitiveness in the mining sector.
Investors are awaiting the upcoming disclosures from the company during the second half of 2025 to know its ability to improve financial performance and adapt to economic changes, especially since the United Mining stock has become one of the most volatile stocks in recent trading sessions.
