Saudi Cement producers profits recover in 2Q19

Saudi Cement posted net income of SAR92.3m (US$24.613m) in 2Q19 and profits were up 59 per cent in the period compared to 2Q18, but declined  by 30.3 per cent compared to 1Q19.

The company recorded cement sales of SAR338.6m and received average prices of SAR217.6/t.

"The YoY increase is mainly attributed to improved selling price and volumetric sales, despite an increase in administrative expenses. Deviation in 2Q earnings from our estimates is mainly ascribed to higher-than-expected cost per tonne," said Aljazira Capital.

Meanwhile, Yamama Cement reported net profits of SAR53m (US$14.13m) in 2Q19. Company sales of cement registered an increase of 47.6 per cent YoY to SAR165m.