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09 June 2023

Cement firms' profits decline

By Staff Writer

Two Saudi Arabian cement producers said that profit fell in the fourth quarter on lower sales volumes following a government decision to ban exports.

Yamama Cement Company, the country's third-largest cement producer, said net income in the fourth quarter dropped 33 per cent to SAR85.1 million ($22.69m) from SAR126.9m in the corresponding period last year.

"The reason for the decline [is] lower sales volumes due to the decision to ban cement export as well as the periodic maintenance of some main production lines," Yamama said in a statement on the bourse website.

Earlier on Saturday, Tabuk Cement said net profit in the fourth quarter had fallen more than 68 per cent on lower sales and rising costs as a ban on exports kicked in.

In a regulatory filing, the cement producer said net income in the fourth quarter was SAR14.5m compared with SAR45.7m in the same period in 2007.

The firm said the decline was down to renovation work at its Amrat plant which led to a fall in production and rise in costs.

"In addition [there was] a decline in sales and revenues," the firm said.