Saudi Cement Company (SCC) posted a net profit of SAR286 million for the first quarter of 2014 (ended 31 March 2014), a 16% y/y fall compared to SAR340 million registered in the corresponding period in 2013.
The fall in 1Q14 profit was partly attributed to sluggish local demand, due to a slowdown in the Saudi construction sector. Following the expiration of the government amnesty and the beginning of correction campaigns against illegal migrant workers, the structural change in the labour market has affected the demand for cement in Saudi Arabia and resulted in delays in construction work. SCC also attributed the fall in net profit to an associated company's loss, following an impairment of some of its assets.
SCC operates two cement facilities in the Eastern Province of Saudi Arabia. The two plants, Hofuf and Air Dan, have production capacities of 7825 tpd and 6000 tpd of clinker, respectively.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/africa-middle-east/15042014/saudi_cement_company_witnesses_fall_in_1q14_profit_47/