October 07, 2008

Saudi Southern Cement Q1 2008 net profit up by 48% YoY

Southern Province Cement Company has posted a 47.8% YoY rise in January to Mach 2008 quarter net profit after the launch of a new unit amid strong demand. It made a net profit of SAR 235 million in January to Mach 2008 quarter as against SAR 159 million in January to Mach 2007 quarter.

Before Southern Cement, 3 of Saudi Arabia's 5 biggest cement producers by market value, including Yamamah Cement, posted first quarter profit growth of at least 11% on a jump in domestic demand. Companies in Saudi Arabia are developing or have announced projects in oil, gas and industries worth more than USD 460 billion.

Mr Faisal Hasan head of research at Global Investment House predicts that profits of Saudi cement firms may rise by at least 20% in 2008. He added that cement output capacities are expected to double to 60 million tonnes within the next 3 years as existing companies expand and new producers enter the market.