Saudi Cement Company, the biggest manufacturer of the commodity in the country, posted third quarter profits of SAR140m, up 13.7 per cnet on the same period last year though down on the previous quarter.
The company achieved SAR589.8m for the first nine months of 2010, ending 30 September, up more than 30 per cent on 2009. But the third quarter figure was down more than 26 per cent on the second quarter this year, which saw profits of SAR190.6m – a fall the company attributes to the maintenance work on its facilities as well as the quieter construction period that includes Ramadan.
“Saudi Cement is based in the Eastern Province, and so there is less happening there,” said Nishit Lakhotia, senior analyst at Securities & Investment Company in Bahrain. “Cement demand has increased but the sector has been hit by lower prices,” he added, in reference to the fierce competition of local firms strongly incentivised against exporting.