Saudi Vitrified 2010 net rises 79% as Q4 declines

Clay pipe maker cites increase in sales and fall in production costs

Saudi Vitrified listed in Riyadh almost four years ago.
Saudi Vitrified listed in Riyadh almost four years ago.

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Saudi Vitrified Clay Pipe Company saw net profits soar almost 80% last year as higher sales and lower production costs transformed its balance sheet.

The Riyadh-based clay pipe and fitting manufacturer, chaired by HH Prince Faisal Al Saud, saw after-tax gains rise from to SAR 42.6 million in 2009 to SAR 76.4 million last year, up 79%. Total income for the year rise 45% to SAR 95.6 million and operating profit soared more than 53% to SAR 74.8 million, up from SAR 48.6 million.

Earnings per share – the company’s net income minus dividends of preferred stock, divided by the average outstanding shares – almost doubled to SAR 5.09 from SAR 2.84 in 2009.

But fourth quarter results saw a dip in performance. The net profit fell 13.2% from SAR 18.9 million to SAR 16.4 million riyals against the same three months in 2009, also down 13.7% against the SAR 19 million posted in the third quarter 2010. The company attributed this to an increase in expenses related to selling, marketing and administration, according to its statement on the Tadawul stock exchange.

However, total income rose marginally - from SAR 23.4 million to SAR 23.8 million, or 1.7%.

It is almost four years since the company floated 30% of its shares publically. Last August it revealed that it was studying projects that would see it expand its pipe production, what would be a SAR 100 million investment. The company had been one of the strongest performers in ConstructionWeek’s ‘Stock Stars’ analysis in June, which assessed the performance of construction-sector share prices for the first half of the year.

The share price has since lost more than SAR 10 per share since its 10th July peak of SAR 68, yesterday closing at SAR 57.

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