Saudi Cement net profit down 37pc in Q1

14/05/2017 07:35 AST

Saudi Cement has registered a 37 per cent drop in its net profit for the first quarter which fell to SR165 million ($44 million) from SR265 million ($70.5 million) last year owing to the drop in sales volume and sale price as a result of sluggish demand.

This was in line with the estimate of SR161 million as well as consensus forecast of SR167 million, said a report by top Saudi lender Al Rajhi Capital.

One of the kingdom's largest cement firms by market value, Saudi Cement also saw its net profit fall 12 per cent quarter-on-quarter (q-o-q). it added.

Despite weaker volumes, helped by locational advantage, the company's average realized price marginally declined by three per cent y-o-y and was down two per cent q-o-q, as compared to deep discounts offered by other cement companies, according to Al Rajhi Capital report.

Saudi Cement's gross profit declined 35 per cent y-o-y to SR191 million, impacted by the decline in the top-line as well as the increase in cost per ton by four per cent y-o-y.

However, Al Rajhi pointed out that the company holds the highest level of inventory in the sector (5.1 million tonne), which could give it an advantage over its peers in the coming quarters after any potential removal of energy subsidies.

"However, the advantages are unlikely to sustain due to increasing competition amid weak demand outlook, which may lead the company to offer discount in coming few months. We continue with our neutral rating on the stock and an unchanged target price of SR55 per share," it added.


Trade Arabia

News

Saudi Cement posts SR249m net profit

26/07/2016

Saudi Cement met analysts' estimates as it reported a 2 percent decline in second-quarter net profit on Monday due to a drop in sales and rising power costs.

One of the Kingdom's largest cem

Arab News

Saudi Cement announces cash dividends for 1st Half 2016

25/05/2016

The Board of Directors of Saudi Cement Company has resolved during its meeting held on 24/05/2016 (17/08/1437), to distribute interim dividends to the shareholders for the period first half of 2016 a

Tadawul

Saudi Cement Q1 net profit falls 13pc

19/04/2016

Saudi Cement has reported a 12.5 percent drop in its first-quarter net profit, hurt by a decrease in sales and an increase in energy costs.

One of the kingdom's largest cement firms by mar

Trade Arabia

Most Viewed Companies

Ticker Price Volume

Valuation

SAUDICEMENT Sector Market
P/E
Price/BookValue
Dividend Yield (%)

Momentum

Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg

Top Related Companies

Ticker Price Change
MAADEN 59.55 0.00 (0.00%)
SABIC 54.95 0.00 (0.00%)
SABICAGRINUTRIENTS 116.00 1.00 (0.86%)
YANSAB 30.42 -0.10 (-0.33%)
LUBEREF 94.70 0.75 (0.79%)

Recent News

Gulf Bank launches Concierge App in collaboration with Peacock Concierge

06/03/2026

As part of its ongoing commitment to delivering innovative digital solutions that enhance customers' lifestyles, Gulf Bank has launched its new Concierge App in strategic collaboration with Peacock C

Kuwait Times

Union Properties joins Massachusetts institute's industrial liaison programme

06/03/2026

Union Properties, one of the UAE's leading master developers, said it has entered into a membership agreement with the Massachusetts Institute of Technology (MIT) through its globally recognised Indu

Trade Arabia

Emirates NBD waives ATM withdrawal and debit card fees across UAE and GCC

06/03/2026

Emirates NBD has waived a range of banking fees for customers across the UAE and the wider Gulf, making cash and card services easier to access during a period of heightened regional uncertainty.

Gulfnews

2PointZero buys majority stake in Italian packaging group ISEM for $192m

06/03/2026

2PointZero Group, a next-generation investment powerhouse focused on energy and consumer sectors, has announced that it has formally completed the transaction to acquire a majority position in ISEM,

Trade Arabia

SAL agrees $30m Aviapartner Liege acquisition to expand into Europe

06/03/2026

SAL Saudi Logistics Services Co. has agreed to acquire Belgium-based Aviapartner Liege SA for ?28 million ($30.3 million), giving the Saudi logistics firm a foothold at one of Europe's major air carg

Arab News

logo

Financial Information Co.

Saudi Arabia

GCC Markets

Mutual Funds

News

Investment Tools

Sector News

Screeners

Indices & Commodities

Downloads

Copyright ©2001 - 2025, Financial Information Co. All Rights Reserved.

Terms of Services | Privacy Policy | Advertise with us | Contact Us | Sitemap