Listed cement firms’ profits down 16% to SR3.75 billion in 9 months

Analysts expect cement demand to remain modest In November and December due to slow construction activity.
Updated 27 November 2016

Listed cement firms’ profits down 16% to SR3.75 billion in 9 months

RIYADH: Net profits of listed cement firms dropped by 16 percent to SR3.75 billion in the past nine months of the current year, compared to SR4.46 billion in the same period last year, according to a financial report.
Likewise, cement firms’ profits of Q3, 2016 fell by 11.4 percent to SR857 million compared to SR967 million in Q3, 2015. The Q3 profits were also down by 35 percent compared to Q2 profits, which stood at SR1.31 billion, Al-Hayat daily reported.
The number of listed cement companies stood at 14 with their capital reaching SR18.4 billion. Their market capitalization reached SR52 billion, or 3.3 percent of the capital market value.
Yamamah Cement Company (YCC) is the largest in terms of capital at SR2.02 billion, followed by Madinah Cement Company (MCC) at SR1.89 billion, Northerly Border Cement Co. (NBCC) at SR1.8 billion, while Um Al-Qura Cement Company (UQCC) has the least capital of SR550 million, the report said.
The Southern Region Cement Co. (SRCC) was the biggest profit booster capturing 19.3 percent of the sector’s total profits in nine months at SR724 million, compared to SR739 million in the same period last year, or a drop of 2.03 percent. The company attributed the profit fall to decline in sales, low demand and increased expenses due to the addition of a third line project, the Tihamah factory, to the company’s assets.
The company’s Q3 profits reached SR173 million compared to SR202 million, or a drop of 14.4 percent, and 35 percent compared to Q2 profits, which stood at SR268 million, the report said.
Saudi Cement Co. (SCC) was the second largest for sector profit growth where it posted SR715 million in nine months of the current year, or 19.1 percent of the sector’s total profits.
However, the company’s profits dropped by 6.4 percent compared to the reports of the same period last year, which stood at SR764 million. The company attributed the profit fall to sales decline and high costs of sales due to increased prices of energy.
Likewise, Q3 profits dropped by 3.85 percent to SR200 million, compared to SR208 million in Q3, 2015, the report said.
On the other hand, shares of Arabian Cement Company (ACC) to the sector profit growth reached 12.4 percent, where it realized profits of SR466 million in the past nine months, compared to SR447 million in the same period last year, or an increase of 4.23 percent.
The company attributed the profit growth to the increase of other revenues, including a SR17 million compensation from an insurance company rising from a fire at Cement Mill No. 3 in 2012, and an increase of profits in one of its subsidiary companies.


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.