Qassim Cement Co reports 53% drop in 2Q profit

Qassim Cement Co reported a 53.29 per cent YoY decline in 2Q17 net profit, while the drop on a QoQ basis was 33.63 per cent, according to a bourse filing.

Profits totalled SAR53.2m (US$14.2m) in 2Q17 compared to SAR113.9m for the same period last year, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Monday. The contraction was in part attributed to lower domestic demand.

The reduction compared to the first quarter was due to a decrease in cement prices, in addition to lower demand due to Ramadan.

Sales volumes fell by 34.2 per cent and totalled SAR135m in 2Q17 compared to SAR220.2m in 2Q16.

First-half profits were down by 46.16 per cent to SAR 133.36m from SAR 247.7m a year earlier.