RIYADH, 12 April 2006 — Saudi Electricity said yesterday a government decision to cut fuel oil prices would help boost its profit this year, while the firm’s stock was hit hard in a downturn in the stock market. The company said in a statement that it expects to realize an additional SR42 million ($11.2 million) in profits this year after the Cabinet fixed prices for heavy crude oil and fuel oil sold domestically. It did not give a figure for total profit expected for 2006. “For a utility stock — known for modest growth in earnings — it’s a significant rise,” a company official said. Blue-chip Saudi Electricity made a 2005 net profit of SR1.48 billion.
Yamamah Cement’s Profit Jumps 54%
RIYADH, 12 April 2006 — Saudi cement firm Yamamah posted a first quarter net profit of SR158.7 million ($42.3 million) yesterday, up 54.4 percent from the same period in 2005. Shareholders approved a plan for a 2-1 bonus share issue, Yamamah said in a statement on the bourse’s website. The stock closed yesterday’s morning session at SR719.75, down 9.04 percent from Monday’s close, trading at around 41 times 2005 earnings.
SAFCO Posts SR275.4m Profit
RIYADH, 12 April 2006 — Saudi Fertilizers Co. (SAFCO) posted yesterday a first quarter net profit of SR275.4 million ($73.4 million), up 16.5 percent compared to the same period in 2005. The growth in profit stemmed from “an improvement in prices of some of ... main products”, it said in a statement posted on the bourse’s website.
Hyundai Heavy Wins Saudi Contract
SEOUL, 12 April 2006 — South Korea’s Hyundai Heavy Industries Co. said yesterday it has won a $170 million order to build a power plant for Saudi Arabia’s state-run oil firm Saudi Aramco. Hyundai said in a statement it would build the gas turbine power plant at Shaybah, Saudi Arabia, by 2008.