Eastern Province Cement Company announced its full year 2009 results. Net profits witnessed a decline of 19.2 per cent YoY in 2009 to SR350.7m (US$953.6m) while revenues declined by 2.5 per cent YoY to SAR778.6m (US$207.6m) in 2009.
On a quarterly basis, the company registered earnings of SAR50.1m (SAR0.58 EPS) in 4Q09 which is down 32.9 per cent YoY and down 50.2 per cent QoQ. In contrast, revenues are up 13.9 per cent YoY and up 3.3 per cent QoQ.
Despite the increase in total dispatches by 2.8 per cent to 3.19Mt in 2009 compared to 3.1Mt in 2008, sales revenue declined in 2009 due to a decline in average realisation price by 5.2 per cent to SAR243.8/t in 2009 from SAR257.1/t in 2008. Consequently the gross margins also declined to 51.6 per cent in 2009 from 58 per cent in 2008.
On a quarterly basis the sales revenue increased due to an increase in volumes sold by 18.9 per cent to 0.9Mt in 4Q09 compared to 0.76Mt in the corresponding period last year. However, the increase in sales has come at the cost of falling margins.