Saudi Cement companies await upturn on 2Q18 export sales

Saudi Cement companies await upturn on 2Q18 export sales
14 March 2018

Saudi cement companies' sales in February fell 11 per cent 3.63Mt compared to sales of 4.09Mt in February 2017. However, analysts are confident that 2Q18 sales will increase on the back of higher exports.

Asharq Al-Awsat reported that Saudi Arabian cement companies will rely on completing domestic construction projects and increased exports to raise revenues in 2Q18.

"Saudi cement companies are positioned to boost sales in the second half of this year," said economic specialist Faisal Al-Akab. "The start of the export phase to several foreign markets will boost the chance of sales growth."

Al-Jouf Cement announced on Monday that its profits for the year 2017 fell to SAR41.1m (US$ 10.9m), a decrease of 43 per cent, compared to profits of SAR72.1m (US$ 19.2 million) achieved during the same period in 2016.

However, there was positive news from Umm Al Qura Cement, which achieved a profit of SAR65.7m (US$17.5m) by the end of 2017, compared to losses estimated at SAR10.4m (US$ 2.77m) in the same period in 2016.

The company attributed this improvement in its financial results to the fact that it did not start commercial production and sales before 18 September 2016.

Published under Cement News