Al-Jouf Cement returns to quarterly profit

Al Jouf Cement has posted a 16.4 per cent rise in second-quarter net profit following five consecutive quarterly declines. A gradual improvement in shipments for the three-month period is also leading the Saudi-based company to anticipate a full recovery by year-end.

During the second quarter of the year, the company posted a net profit of SAR16.1m. The results were slightly above analyst consensus estimates of SAR13.5m.

Cement dispatches rose 1.6 per cent YoY to 368,000t showing signs of recovery as the sector gradually emerges from the effects of labour shortages which have crippled construction activity since the second half of 2014. Consequently, the research firm believes the company may witness a full recovery by the end of the year, a report by Al-Rajhi Capital states. However, the research house notes that Al Jouf has imported more than 180,000t of cement this year which may weigh on margins going forward.