Najran Cement Co posts lower profits

Najran Cement Co posts lower profits
09 May 2017

Najran Cement Company reported a 81.7 per cent YoY decline in its profits during the first quarter of 2017, according to a Saudi bourse filing.

Profits reached SAR11.22m (US$2.99m) in 1Q17, compared to SAR61.34m in 1Q16.

Net revenues fell 50.4 per cent to SAR111.4m in the period under review, compared to SAR224.4m in 1Q16.

The company’s 1Q17 results were weighed down by lower selling prices, and decreased sales volumes due to lower demand and the slowdown in construction activities in Saudi Arabia.

Operating in the southwest of the country, Najran Cement had a 5.3 per cent market share in 2016, shipping 2.9Mt of cement. The company’s total cement capacity is over 5Mta, split equally between a grinding unit some 50km west of Najran on Highway 15 and the integrated works at Al Mundfin. The company suspended production of its Clinker Line 2 (3000tpd) in March 2017 due to market conditions.

Published under Cement News