Qatar National Cement net down 13% on sales dip

Qatar National Cement holds a strong position in its home market.

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Qatar National Cement Company saw net profits dip over nine months compared to the same period last year on the back of fewer sales, a sign that any explosion in the country’s construction activity is yet to fully materialise.

The only listed cement supplier on the Qatar Exchange said it made QAR 329m after tax, down 13% against the QAR378m posted the previous year.

Top-line revenue fell 10.7% to QAR737.9m, with the company’s earnings a share slipping to QAR6.7 from QAR7.7.

Qatar has emerged as a major hub for construction in the wake of a global financial crisis that has seen projects slow or halt in the UAE.

But though the company is currently developing extensive masterplanning for stadia and rail infrastructure as it prepares for the 2022 World Cup, current construction is limited to high-rise buildings, infrastructure and some villa building.

Consultants such as UK's Hilson Moran and contractors such as Saudi’s Abdullah Al-Khodari & Sons have recently opened offices in the Gulf state, though the general consensus is that it will take some time for the big projects to come on line, despite some major contract awards related to the rail system.

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“It is going to take a little bit more time for Qatar to have everything kick in,” Peyman Mohajer, MD at Whitby & Mohajer Engineers in Dubai, said last month.

“I think it is still planning, which is wise, seeing who are the best players to have for the projects, and it is aligning itself with the right contractors who will help the country.”

The situation compares to Saudi Arabia, where many of the listed cement suppliers have posted strong third-quarter profits on the back of current building demand.

Qatar National Cement is helped by energy subsidies from the government, according to one analyst at Global Investment House in Kuwait.

The company’s assets and liabilities have remained stable over the year, with the company paying off its term loan. Company shares remained static at QAR108 on Thursday.