Saudi Cement first quarter profit rises 16%

Saudi Cement first quarter profit rises 16%
Published: 19 April 2010

Saudi Cement Co said first quarter profit rose 16.2 per cent as sales increased in the kingdom.

Net income rose to SAR176.6m (US$47.1m) or 1.73 riyals/share, fromSAR152m or 1.49 riyals/share in the year earlier period, the company said in a statement on the Saude bourse.

NCB Capital forecast Saudi Cement to achieve a profit of SAR178m.

 “The reason for the rise is the increase in sales volumes compared to the same quarter the previous year…and that is due to increased local demand during that period,” Saudi Cement said in its statement.

Operating profit reached SAR182.9m, up 14.2 per cent from the previous year.

Saudi producers are still facing an export ban which was imposed in 2008 ater cement prices skyrocketed. The ban, compounded by supply from new capacity coming on-stream, led to lower prices and profits for cement producers last year.