Displaying items by tag: Saudi Arabia
Saudi Arabia: Arabian Cement Company has signed an agreement with Saudi British Bank for US$107m of Islamic financing. The loan is to be repaid over a period of five years, including a one-year grace period. Arabian Cement said that it will use the loan to finance part of the first phase of an expansion project to install two new cement mills.
Saudi Arabia: Saudi Arabia's cement sales rose by 3% year-on-year to 57.2Mt in 2014 from 55.3Mt in 2013, according to statistics published by the Argaam news website.
In the fourth quarter of 2014, Saudi Arabia's cement sales reached 14.6Mt, compared to 12.7Mt in the same period of 2013 and 11.6Mt in the third quarter of 2014. In December 2014, cement sales rose by 17% year-on-year to 5.59Mt from 4.79Mt in December 2013. In December 2014, Saudi Cement Company sold 785,000t, followed by Southern Province Cement with 769,000t and Yanbu Cement with 623,000t.
Saudi Arabia: The combined net profit of the Saudi cement firms rose by 6% in 2014 to reach US$1.56bn compared with US$1.48bn recorded in 2013. The profit during the October - December quarter grew by 31% to US$383m compared with US$293m during the same period in the previous year.
The net profits of seven firms, out of 14 listed companies, grew. The profits of six companies dropped in 2014 and one company, Um Al-Qura, registered a net loss.
Arabian Cement Company (ACC) registered the biggest profit, with its profits reaching US$172m compared to US$51.0m in 2013, an increase of 236%. The company attributed the surge in profits to a growth in sales, which reached US$457m in 2014, compared with US$361.6m in 2013.
ACC was followed by Hail Cement Company (HCC), which was the second biggest booster for the sector. Its profits reached US$39.1m in 2014 compared to US$13.3m in 2013, increasing by 191%.
The profits of six companies dropped in 2014 and this negatively affected the sector's profit growth for the year. The profits of Yamama Cement Company (YCC) fell by 23%, followed by Saudi Cement Company (SCC), the profit of which fell by 8% year-on-year.
Saudi Arabia: Yamama Cement has reported that its net profit in 2014 has fallen by 23% year-on-year to US$179m from US$232m in 2013. The decrease was attributed to lower sales due to poor cement demand in 2014. Its operating profit fell by 21% to US$175m from US$221m.
Saudi Arabia: The boards of directors at the Arabian Cement Company has approved the appointment of Abdullah Mohammed al-Eissa as board chairman, with a three-year term starting from 1 January 2015.
In early December 2014, the company elected a new board of directors. The other newly-elected board members are Ghassan al-Souleiman, Saud al-Souleiman, Adel al-Zaid, Ibrahim al-Rajhi, Ibrahim Aba al-Khail, Sami Baroum, Mu'taz al-Azawi and Alwaleed al-Dareean
Saudi Arabia: The management board of Tabuk Cement Company has appointed Ali al-Asmari as director general, effective as of 1 January 2015. Al-Asmari, who joined Tabuk Cement in 1996, has held various positions within the company's management, including head of quarries, factory director and deputy director general.
Saudi Arabia: Mohammed Aba al-Ala has resigned from Najran Cement effective of 31 December 2014. Without disclosing the reasons for the resignation, Najran Cement explained that Aba al-Ala will remain with the company as board chairman. Badr Jawhar has been appointed CEO as of 1 January 2015.
Saudi Arabia: Demand for cement has dropped by 5% as production surpluses reached 22Mt, an amount that can cover cement consumption for five months. Jihad Al-Rashid, head of the National Committee of Cement Producers, said that total production of the national companies reached 57Mt/yr, according to local media. The committee is working with the Ministry of Commerce to allow companies to export cement as a solution. Al-Rashid attributed the existence of big surpluses of cement to a delay by the Ministry of Housing and a subsequent decline in the construction pace.
The fall in demand has occurred when cement producers predicted that demand would rise by 5%. Cement prices cannot be reduced as prices are fixed by the Ministry of Commerce. As a temporary solution some of the producers may extend maintenance periods. Abdulrahman Al-Qarni deputy president of Abawain Holding Company said that cement demand normally drops towards the end of each year, when the majority of construction companies have finalised their projects and begun to explore orders for the new year.
Saudi Arabia: Saudi City Cement Company has started trial operations of a second production line. Without disclosing any financial details, Saudi City Cement said that the new production line will have a production capacity of 5,500t/day. The trial period will last about four months.
Saudi Arabia: Saudi cement producer City Cement Company has announced that it intends to invest US$6.7m in an alternative energy project. The Chinese engineering company Sinoma will carry out the project, anticipated to be completed by 30 June 2015. Without providing further details on the nature of the project, City Cement said that it will use its own funds and/or Murabaha financing to fund it.