Saudi cement manufacturers see mixed results in 3Q13

Profits of Saudi Arabian cement companies have dropped by 4% y/y from SR1.12 billion in 3Q12 to SR1.07 million in 3Q13. Profits for the first nine months, however, have undergone a 9% increase y/y, reaching SR4.7 billion. Sales of cement have additionally grown from 10 million t in 3Q12 to 10.3 million t in 3Q13.

The Saudi cement manufacturers saw mixed results. The majority experienced a drop in profits from 3Q12 while companies such as Northern Region Cement Co. (NRCC) and Hail Cement Co. (HCC) reported an increase in profits.

3Q13 figures

• The Arabian Cement Co. (ACC) saw a SR70 million drop in profits y/y from SR87 million to SR17 million.
• Yanbu Cement Co. (YCC) reported a 10.8% fall in profits from SR157 million in 3Q12 to SR140 million in 3Q13.
• The Eastern Province Cement Company (EPCC) announced a 19.04% decrease y/y from SR84 million to SR68 million.
• Jouf Cement Co. (JCC) had 68.18% fall in profits y/y from SR22 million to SR7 million in 3Q13.

However other cement firms reported promising figures:

• The Northern Region Cement Co. (NRCC) realised profits of SR50 million in Q3 compared to SR7 million in 3Q12.
• Hail Cement Co. (HCC) saw an increase in profits from SR3 million to SR17 million in 3Q13.
• Saudi Cement Co. (SCC) reported profits of SR229 million in 3Q13 compared to SR209 million in 3Q12.

The cement companies that experienced a decline in profits reported that this was due to a decrease in sales during religious holidays such as Ramadan.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/africa-middle-east/01112013/profits_of_saudi_cement_manufacturers_drop_in_3q13_369/