The profits of Saudi Arabia’s 14 bourse-listed cement producers dipped by one per cent or SAR42 million in the first half of the current year.
Saudi cement manufacturers’ earnings edged down to SAR3.37 billion compared with SAR3.41bn in the same period last year, according to data and analysis by Al-Eqtisadiah paper.
The producers’ profits declined by nine per cent or SAR109m during the second quarter of the current year, reaching SAR1.67bn compared with SAR1.78bn in the same period last year.
The drop in returns came despite strong government support to cement producers – the government provides them with land and support fuel prices.
Among the 14 companies, six firms saw their profits retreating, one company reported losses and seven companies recorded profits in the second quarter.
Hail Cement Company’s profits plummeted by 38 per cent to SAR29m, compared with SAR46m last year. Najran Cement Company saw its profits falling by eight per cent, to SAR78m, compared with SAR84m.
Arab Cement Company profits also sank by 19 per cent, to reach SAR162m from to SAR200m in the same period last year.
Yamama Cement Company’s earnings retreated by eight per cent to SAR191m from SAR207m in the same period last year.
(SAR1 = AED0.98, at the time of publishing)