Arabian Cement makes 2Q18 net loss of SAR50.9m

Arabian Cement makes 2Q18 net loss of SAR50.9m
24 August 2018

Arabian Cement Company (ACC) registered a net loss of SAR50.9m (US$13.5m) in the 2Q18 mainly due to reduced performance at its Qatrana Cement factory in Jordan. The company's net profits fell by 5.5 per cent in 2Q18 compared to 2Q17, while sales reached 0.533Mt in 2Q18 down 34 per cent YoY.

The Qatrana Cement plant recorded a higher than estimated net loss of SAR52.2m in 2Q18. The company held an inventory of 1.34Mt by the end of June, representing 42.2 per cent of the last 12 month's production.

In Saudi Arabia competition from the western region saw average prices fall to SAR130/t (US$34.7), down -17.6 per cent YoY. A company statement said, "We expect the selling prices would stabilise in the following years given the mega construction projects in the western region and the company's relatively low inventory level."

Published under Cement News