Saudi Cement Sales Forecast for Q2 2018 Sees Improvement

Saudi Cement Sales Forecast for Q2 2018 Sees Improvement

Tuesday, 13 March, 2018 - 11:15
Saudi Cement Company’s results beat the estimates of Al Rajhi Capital- (Photo Credit: Arabianeye-Reuters)
Riyadh – Shojaa al Baqmi
Saudi cement companies' sales in February reached 3.63 million tons with estimates suggesting second-quarter 2018 sales will increase.

An increase in sales is expected as construction projects progress implementation and completion on the one hand, in addition to the launch of Saudi cement exporting phase to foreign markets.

The total sales of Saudi cement companies experienced an 11 percent drop in February 2018 with a registered 3.63 million tons compared to February 2017 which saw the sale of 4.09 million tons by cement companies listed in the local financial market.

“Saudi cement companies are positioned to boost sales in the second half of this year," said economic specialist Faisal Al-Akab.

“The start of the export phase to several foreign markets will boost the chance of sales growth,” he added.

Monthly sales saw an across-the-board slight decline, with the exception of four companies achieving growth in sales volume in February figures.

Umm Al Qura Cement, one of the listed companies in the Saudi stock market, disclosed on its financial record for 2017. The record showed that the company achieved a profit of 65.7 million riyals ($ 17.5 million) by the end of 2017, compared to losses estimated at 10.4 million riyals ($ 2.77 million) in the same period in 2016.

The company attributed this remarkable improvement in its financial results to the fact that it did not start commercial production and sales before September 18, 2016.

On the other hand, Al-Jouf Cement announced on Monday that its profits for the year 2017 fell to 41.1 million riyals ($ 10.9 million), a decrease of 43 percent, compared to profits of 72.1 million riyals ($ 19.2 million) achieved during the same period in 2016.

Saudi Arabia has set new strategic targets related to increasing the contribution of the industrial sector to the GDP. In 2016, the Kingdom began to activate these strategic objectives significantly by increasing the number of factories producing in the country by 10% compared to 2015.

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