Southern Province 9M profit contracts to SAR238m

The net profit after zakat and tax of Saudi Arabia-based Southern Province Cement Co declined by 28.1 per cent YoY to SAR238m (US$63.5m) in the 9M22 from SAR331m.

Revenues fell by 12.3 per cent YoY to SAR887m in the 9M22 period from SAR1.01bn in the 9M21.

Third-quarter 2022 financial results
In the third quarter of 2022, the company’s net profits after zakat and tax saw a 20.3 per cent improvement to SAR89m when compared with SAR74m in the 3Q21. When compared with the previous quarter (2Q22) net profits increased by 45.9 per cent from SAR61m.

Revenues were up 13.7 per cent YoY to SAR323m from SAR284m in the 9M21 while QoQ the increase was 38 per cent.

Domestic sales expanded to 1.45Mt in the 3Q22 from 1.43Mt in the 3Q21, while export sales increased significantly. Clinker exports to Yemen reached 432,300t, according to Aqeel Kadasah, the company's CEO.

Outlook
Domestic cement demand is expected to grow going forward, supported by announced projects, and sold at a higher price, according to Mr Kadasah.