Profits of Saudi cement firms rise 6% to SR5.9bn

Net profits of the listed cement firms grew by 6 percent to reach SR5.9 billion in 2014 compared to SR5.6 billion in 2013, according to a financial report.

Meanwhile, profits of the fourth quarter (2014) grew by 31 percent to SR 1.44 billion compared to SR 1.1 billion in the same period last year, the report, filed by Aleqtesadiah daily, said.

In general, profits of seven firms, out of 14 listed companies, grew while profits of six companies dropped in 2014 while one company, namely Um Al- Qura Company, registered losses in the year, the report said.

Arabian Cement Company (ACC) was the biggest booster to the sector profit growth in 2014 where it realized profits of SR646 million compared to SR192 million in 2013, or an increase of 236 percent.

The company attributed jump in profits to sales growth to SR1.72 billion in 2014 compared to SR1.36 billion in 2013, or an increase of 26 percent, the report said.

Hail Cement Company (HCC) was the second biggest booster for the sector profit growth where it realized SR147 million in 2014 compared to SR50 million in 2013, or an increase of 191 percent.

Profits of other companies varied in 2014 where profits of the Eastern Province Cement Co. (EPCC) reached SR373 million compared to SR309 million in 2013 (+21 percent), Najran Cement Co. (NCC) SR 243 million compared to SR 198 million (+23 percent), Southern Region Cement Co. (SRCC) SR 1.04 billion compared to SR1.00 billion (+4 percent), whereas profits of Jouf Cement Co. ( JCC) and Madina Cement Co. (MCC) grew by 12 percent and 2 percent, respectively, the report said.

Meanwhile, profits of six companies dropped in 2014 and negatively affected the sector’s profit growth in the year.

Profits of Yamamah Cement Company (YCC) dropped by 23 percent to SR671 million compared to SR870 million in 2013, followed by Saudi Cement Company (SCC) at 8 percent to SR806 million (compared to SR876 million).

Other companies had their profits dropped in 2014 at varying rates as follows: Tabuk Cement Co. (TCC), Qasim Cement Co. (QCC), Yanbu Cement Co. (YACC), the Northerly Border Cement Co. (NBCC) at 21 percent, 4 percent, 2 percent, and 1 percent, respectively, the report said.

On the other hand, Um Al-Qura Cement Company (UQCC) was the sole company to have registered a loss of SR 20 million in 2014 for being new as it was established in July 2013 and listed on the Saudi Stock Exchange Market (Tadawul) in June 2014, the report said.