RIYADH, 11 May — Combined profits of Saudi cement companies rose 37.1 percent in the first quarter of 2001 compared to the corresponding period for the previous year. The profits of the eight firms reached $100 million, up from the $72.9 million posted in the first three months of 2000.
Together the companies produce about 20 million tons of cement a year, of which 14 million tons is used locally and 4 million tons exported, leaving a surplus of 2 million tons. While the average price of an equity share in a cement company in the Kingdom is SR169.6 the dividend rate is SR3.58 in the first quarter of the year.
The increased profits reflected the health of the construction sector in Saudi Arabia, where the economy has been boosted by rapidly increasing export revenue.
In the past few years the sector suffered some setbacks largely due to the surplus production and lukewarm construction market.
