QNCC profits up 39%, Qatar

QNCC profits up 39%, Qatar
Published: 25 October 2010

Qatar National Cement Company has bucked the regional trend for cement manufacturers by posting a higher profit for the first nine months of this year than the same period in 2009.

The Doha-based manufacturer of cement and lime revealed gross profits of QAR385.2m (US$105.7m) from QAR275.8m last year, up 39%, produced by a decrease in sales costs that offset a fall in revenues, which were down more than 30%.

A fall in finance charges meant that the after-tax income reached QAR378m, up 16.9%.

The results continue an unusually strong year for a cement firm in the Gulf, having achieved a 1.3% increase in net profits for the first six months compared to the same period last year; again, despite a fall in revenues.

Last week, Yousef Hussain Kamal, the country’s Minister of Economy and Finance said that the government will invest QAR450bn (US$120bn) into local projects over the next 10 years. According to him, billions of riyals will be invested in the development of infrastructure, oil, gas and petrochemicals projects. Kamal said Qatar’s investments enjoy diversity and variety internally and externally. With a variety of high profile projects already underway - including the Pearl, New Doha International Airport, new Doha port, Lusail city, Barwa city, Barwa financial district, Barwa Commercial Avenue and others, such as the new Metro service and high speed rail links - Qatar’s investment in local projects is immense.