Net profits up at RAK Cement, despite 12% revenue dip in Q1 2019
Various Tadawul-listed cement firms in Saudi reported significant year-on-year profit increases in opening quarter of the year
Net profits at Abu Dhabi Securities Exchange (ADX)-listed Ras Al Khaimah Cement Company increased by over 10% in the first three months of 2019, despite a dip in revenues during the same period compared to the first quarter of 2018.
According to its Q1 2019 financial statement, the group made $598,949 (AED2.2m) in net profits for the three months ending 31 March, an 11% increase on Q1 2018’s corresponding $517,265 (AED1.9m) figure.
Total revenue stood at $13.5m (AED49.7m), a 12% dip on the $15.4m (AED56.5m) in cash it brought in during the opening three months of 2018.
Revenue from local sales during the first three months of 2019 stood at $12m (AED44.2m), a 13% fall on the corresponding $13.8m (AED50.8m) figure in 2018.
The figures mirror similarly positive figures from various cement firms in Saudi Arabia during the first three months of this year.
For the three months ending 31 March, 2019, net profits at Najran Cement Company – located in the kingdom’s south – stood at $1.6m (SAR6m), a 159% increase on Q1 2018, when it reported a loss of $2.7m (SAR10.2m).
Figures from Hail Cement in Saudi’s Northern region were equally as positive.
Net profits in Q1 2019 stood at $6m (SAR22.5m), a whopping 436% increase on Q1 2018 when the corresponding number stood at $1.2m (SAR4.2m).
Hail reported $18.3m (SAR68.6m) in revenue for Q1 2019, up 41% on the $13m (SAR48.7m) in cash brought in during the first three months of 2018.
Al Rajhi Capital’s Saudi Cement Sector report, Q3 2018, published in February 2019, said Saudi’s demand for cement will “continue to decline in 2019, on the back of limited capital spending by government”, coupled with rising construction costs.