Saudi Fransi Capital (SFC) issued a new report covering the Saudi cement sector on March 30.

The report fully covered listed cement equity, with a new buy recommendation for Tabuk Cement, maintained the buy recommendation for Hail and Arabiya Cement companies, and upgraded AlQassim Cement from maintain to buy.

The report highlighted fuel allocation to cement companies as the main barrier for earnings growth; meanwhile producers operate at maximum utilization levels. It anticipates volume recovery during Q1 2014 following the lows witnessed in November 2013.

Furthermore, SFC estimates a total profit of around SR1.5 billion for the sector during Q1, 2014, marking 15 percent growth over the same period in 2013.