Qatar National Cement Company profits flat for 9M2016

Qatar National Cement Company profits flat for 9M2016
Published: 13 October 2016

The Qatar National Cement Company (QNCC) has released its earning statement for the first nine months of 2016, showing that revenues and profits have changed little from the corresponding period in 2015.

Profits at QNCC were down one per cent to QAR355m (US$97.6m), while revenues also fell slightly, being down 0.9 per cent to QAR839m.

Taken together with previous three-monthly earnings statements, QNCC’s revenues have now fallen for two straight quarters, declining by 3.0 per cent in Q2 and 3.4 per cent in Q3. Profits rose in the second quarter by 9.5 per cent YoY, but fell by 10.8 per cent in the third quarter.

Although the company did not comment on its results, it is possible that the lifting of Saudi Arabia’s ban on cement exports has hurt QNCC’s earnings.

Meanwhile, the firm is taking steps to cut costs. In July, it announced it was to close its oldest plant, an integrated facility that opened in 1969, which currently has a capacity of 0.2Mta of clinker and 0.14Mta of cement.