Yamama Saudi Cement Company was established in 1961 to serve the central region of Saudi Arabia. It operates a plant with capacity of 2.86 million tonnes outside Riyadh.Yamama Saudi Cement decided against increasing capacity in the early 1990s.

As a consequence it has managed to keep production close to capacity without building up excessive stocks. In 1996, its cement production reached an all-time high of 3.1 million tonnes a year (t/y). Sales in the same period were just over 3 million tonnes.

However, both cement production and sales have declined since then. In 1997, cement production stood at 2.6 million before falling to 2.4 million t/y in 1998. Cement sales hit 2.7 million t/y in 1997 and 2.

4 million t/y in 1998.Yamama Saudi Cement has been consistently profitable. Net earnings reached an all-time high of SR 383 million ($102 million) in 1996. However, profits fell 14 per cent in 1997 to SR 327.

5 million ($87.3 million). Gross income declined by 12 per cent to SR 315.8 million ($84.2 million) from SR 383.1 million ($102.2 million). The negative trends continued in 1998 with sales revenue falling to SR 277 million ($74 million).

Net income for the year was SR 300.9 million ($80 million). The dividend for 1998 was cut for the second consecutive year. Analysts ascribe falling productivity and sliding earnings to a contracting domestic market.

Increased competition and oversupply have driven down cement prices and exports have been unable to expand to compensate. Such unfavorable market conditions have increased the possibility of consolidation within the sector and Yamama Saudi Cement is among those particularly interested in mergers, analysts say.

An extraordinary shareholders' meeting in July 1998 agreed to the halving of paid-in capital to SR 450 million ($120 million) from SR 900 mn.

Individuals	N/A
Institutions	N/A
Floating	N/A
Government	N/A

Director	Khaled Bin Suleiman Al Abdul Aziz Al Rajhi
Director	Mohamed Bin Abdullah Bin Adwan
Chairman	Prince Faisal Bin Mohamed Bin Saud Al Kabir
Vice Chairman	Prince Sultan Bin Mohamed Bin Saud Al Kabir
Vice Chairman	Prince Turki Bin Mohamed Bin Abdul Aziz Bin Turki Al Saud
Director	Representatives of
Director	Sheikh Abdul Aziz Ibrahim Al Mehanna
Director	Sheikh Rashed Al Mubarak Al Mureishad

	2004	2003	2002
Total Assets	1,960,097	1,488,774	1,371,489
Shareholder's Equity	1,347,227	1,076,799	960,002
NIAT	542,228	388,596	320,048
Dividends	N/A	270,000	270,000

	2004	2003	2002
Assets Growth	31.66%	8.55%	3.54%
Earning Growth	39.54%	21.42%	13.03%
ROaA	31.44%	27.17%	23.74%
ROaE	44.74%	38.16%	34.19%
No. Of Shares	9,000,000	9,000,000	9,000,000
EPS	60.25	43.18	35.56
EPS Growth	39.54%	21.42%	13.03%
Payout Ratio	N/A	69.481	84.362

	Trailing
PE
PB
DVPS
Div Yield
EV
EV/Equity

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