Sharjah Cement, listed on the Abu Dhabi stock exchange, has reported a 64 per cent drop in profit for the year ended December 31, 2009.
In a preliminary financial disclosure made to the Abu Dhabi Stock Exchange yesterday, the company said profit generated from operations had dropped to Dh136 million in 2009 compared to Dh383m in 2008.
The company also said that sales had dropped by 24 per cent during 2009 compared with the previous year. Sales revenue had declined from Dh1,198m in 2008 to Dh913m in 2009.
The company attributed the huge decline in profits to the drastic fall in cement prices in the UAE market.
"There has been a substantial reduction in selling prices during the second half due to decreased demand," said the statement.
Cement was priced at more than Dh400 per tonne in 2008 and dropped to as low as Dh170 per tonne to Dh220 per tonne in 2009.
"During the year, the company faced shortages in energy supplies which negatively affected production and cost of sales," the statement added. The firm said local and international markets remained volatile but have shown an improvement as compared to 2008. However, the company said the shareholders' equity of Dh1,431m had not been materially affected in comparison to 2008.
Ras Al Khaimah Company for White Cement and Construction Materials said its net profit for 2009 stood at Dh70m. Its revenue increased from Dh250.43m in 2008 to Dh293.05m in 2009. Net operational profit increased
from Dh33.12m tonnes in 2008 to Dh66.41m in 2009.
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