Southern Cement 2Q net falls 7.8% , Saudi Arabia

Southern Cement 2Q net falls 7.8% , Saudi Arabia
Published: 13 July 2009

Southern Cement made a net profit of SAR212m ($56.53m) in the three months to June 30, down from SAR230.5m in the year-earlier period, it said in a statement on the Saudi bourse website.

The company also blamed higher costs for maintenance apart from a lower yield from a murabaha, an Islamic finance tool, the firm said.

It also said it would pay a first-half dividend of SAR2.5 for each share.

Southern Cement said last month it may freeze expansion plans due to the year-long export ban that is preventing them from meeting contracts abroad.

The Saudi government imposed an export ban on cement companies last year after the country faced a shortage in the local market as firms exported large quantities abroad in search of better profits.

In May, the government allowed cement makers to export part of their surplus production provided they sell their product at the local market for 200 riyals a tonne.