Southern Cement 3Q net profit up 53% YoY, beats esitmates

Southern Cement 3Q net profit up 53% YoY, beats esitmates
Published: 27 October 2014


Southern Cement posted a third-quarter net income of SAR285m (US$76m), rising 53 per cent YoY. The result was above NCB Capital and consensus estimates of SAR200m and SAR196m, respectively.
 
However, on an adjusted basis, earnings were down 7.6 per cent YoY and below estimates by 12-14 per cent. With sales in-line at 1.56Mt, the negative surprise came from higher costs.

NCBC estimated costs at SAR102/t, and believes it could have been as high as SAR 122/t.

Southern Cement announced it made a capital gain of SAR112.5m from the sale of its investment in Tasnee Power Services Company (not listed).