Qassim Cement Company - Full year 2009 results

Qassim Cement Company - Full year 2009 results
Published: 20 January 2010

Qassim Cement Company has announced its full-year 2009 results. Net profits witnessed an increase of 17.7 per cent YoY in 2009 to SR607.9m (US$162.08m) while revenues increased by 20.3 per cent YoY in 2009 to SR986.5m (US$283.03m).

On a quarterly basis, the company registered earnings of SR179.4m in 4Q09 which is up 96.9 per cent YoY and up 39.4 per cent QoQ. Revenues are SR237.4m in 4Q09 which is up 43.6 per cent YoY and up 4.7 per cent QoQ.

Qassim Cement sales revenues increased in 2009 due to a 33.4 per cent YoY increase in volumes sold to 4.3Mt. However, gross margins fell to 57.2 per cent in 2009 from 63.8 per cent in 2008 due to fall in average realization price by 9.9 per cent to SR231.3/t in 2009 from SR256.3/t in 2008.

Qassim cement sales volume increased by 43.2 per cent to 1.048Mt in 4Q09 compared to 732,000t in the corresponding quarter last year. Despite the selective ban on exports, the company managed to increase its sales volume in view of strong domestic demand. However, the increase has come at the cost of decline in realization prices to SR226.5/t in 4Q09.

Net profits have witnessed a massive increase of 96.9 per cent YoY in 4Q09. Most of the increase can be explained by other revenues of SR83m in 4Q09.