Yamamah Saudi Cement third quarter rises 6%

Yamamah Saudi has benefited from the building activity in Riyadh.

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Yamamah Saudi Cement Company said nine-month and third-quarter net profits are expected to increase by 10% and 6% respectively, as continued strong demand in its home province spurs further growth.

The Riyadh-based manufacturer, one of Saudi Arabia’s largest, said net income for the last three months would reach SAR 149m, up from SAR 140m posted for the same period in 2010. Operating profit for the period is also set to increase by 6% against last year, up to SAR 153m.

But this third quarter result is down nearly a third – 32% - against the second quarter of 2011, a result the company attributes to the decline in sales during Ramadan and Eid, when construction activity generally slows.

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Overall the company expects net profits for the first nine months of 2011 to reach SAR 549m, up from SAR 497m for the same period in 2010. Estimated operating profit is set to rise 11% to SAR 555m, with earnings per share – a key indicator of company performance - rising from SAR 4.06 to SAR 3.68.

“The main reason for increase in the estimated net profit is the increase sales from the previous period,” the company stated.

Yamamah Saudi Cement is one of the particularly strong beneficiaries of the nationwide demand for cement and other building materials due to its location in the capital, the focus of many of the company’s biggest building developments.

Princess Noura bint Abdulrahman University, which opened earlier this year and is still in construction in parts, the King Abdullah Financial District, and a clutch of big tower projects around the city are just some of the city’s major developments.

Shares fell 0.81% yesterday to close at SAR 61.