Yanbu Cement has announced a 36.1% increase in net profits for 2012. Last year, the company’s profits reached US$192.1 million (SR720.5 million). Overall operating profits climbed by 43% to US$202 million (SR757.5 million).
The company attributed this outstanding growth to an increase in sales, which saw a 32.7% increase in 4Q12, climbing to US$54.1 million. The start of commercial production at the Yanbu’s fifth production line is also a driving factor behind this recent success
This report follows news that Yanbu Cement was identified as the top stock pick of the Saudi Arabian cement industry earlier this month. A report from National Commercial Bank pointed to the company's prime location on the west coast, where demand is strongest, as well as the fact that it has spare capacity since opening its new line. The flexibility that this will allow the company as demand continues to increase paves the way for more growth to come.
Written by Jack Davidson.