Yamama posts preliminary 4Q13, full-year results, Saudi Arabia

Yamama Cement posted its preliminary 4Q and FY13 results, with net profit up 2.3 per cent to SAR870m.

The results were one per cent below estimates by NBK Capital but in line with a Bloomberg consensus of SAR867m, NBK Capital said in a descent report.  "This implies a net profit for 4Q2013 of SAR178m, slightly below our forecast of SAR186m."

According to NBK Capital, Yamama published a 4Q13 gross profit (post depreciation) of SAR165m, down 22.5 per cent YoY. Assuming quarterly depreciation was in line with previous quarters, ie SAR47m, resulting in a gross profit pre-depreciation of SAR212m, 20 per cent below its estimate of SAR263m.  Selling, general and administrative expenses of SAR13m were in line with its estimate, resulting in a 4Q13 EBITDA of SAR199m, 20 per cent below its estimate of SAR249m.

"Overall, these results seem to be slightly below our anticipations at the operating level, discounting for the subsidies issue. We will await publication of the full results before updating our model. Any changes are likely to be minimal at the net level, but more substantial at the EBITDA level due to the issue of the classification of subsidies for imported clinker; however, this has limited (if any) effect on our fair value," NBK stated.