Profits of listed cement firms drop to SR4.67bn

Net profits of the listed cement firms dropped by 1 percent to reach SR4.67 billion in the first nine months of the current year compared to SR4.72 billion in the same period last year, according to a financial report. The drop in profits is attributed to drop in sales in the mentioned period to stand at 37.7 million tons compared to 39.6 million tons in the same period last year, or a decrease of 5 percent, the report, filed by Al-Eqtisadiah daily, said.

The sector’s profits in Q3, 2014 grew by 21 percent to SR1.3 billion against its profits in Q3, 2013, which stood at SR1.1 billion, the report said.

In general, profits of six firms, out of 14 listed companies, grew while profits of seven companies dropped in Q3, 2014 while one company, namely Um Al- Qura Company, registered losses for being new as it was established in July 2013, the report said.

Arabian Cement Company (ACC) was the biggest booster to the sector profit growth in the first nine months of the year where it realized profits of SR501 million compared to SR299 million in the same period last year, or an increase of 67.5 percent.

Likewise, its sales grew to SR1.28 billion compared to SR1.01 billion in the same period last year, or an increase of 27 percent, the report said.

Hail Cement Company (HCC) was the second biggest booster for the sector profit growth where it realized SR106 million compared to SR22 million. Southern Province Cement Company (SPCC) was the third biggest booster, which realized profits of SR800 million compared to SR753 million (+ 6 percent), the report said.

Meanwhile, contribution of eight companies negatively affected the sector’s profit growth in the nine-month period as their profits dropped at varying rates. Profits of Yamamah Cement Company (YCC) dropped by 25 percent to SR519 million compared to SR693 million, followed by Saudi Cement Company (SCC) at 8 percent to SR806 million (compared to SR876 million), and Yanbu Cement Company (YCC) at 8 percent to SR609 million (compared to SR661), the report said.