Saudi Cement 1Q16 12.5% net profit fall

Saudi Cement 1Q16 12.5% net profit fall
Published: 19 April 2016

Tagged Under: 1Q16 Saudi Cement 

Saudi Cement reported a 12.54 per cent drop in 1Q16 net profit on Monday, hurt by a decrease in sales and an increase in energy costs.
One of the kingdom’s largest cement firms by market value made a net profit in the three months to 31 March of SAR265m (US$70.7m), down from SAR303m in the corresponding period of 2015, according to a bourse filing says AME Info.

Construction-related firms have been put under pressure though by a slowdown in the sector, caused by cutbacks in state spending due to lower oil prices.
Saudi Cement also expects the fuel and electricity price hikes announced in the 2016 government budget to increase its production costs by SAR68m this year.
However, Saudi Arabia has lifted a ban on exporting cement, the local Al Riyadh newspaper reported on 12 April a move that would allow companies to export excess supply.