Saudi Arabia: Southern Province Cement Company has estimated that its net profit for the second quarter of 2012 will be 9.6% higher than the comparable period in 2011 at US$69.9m compared to US$63.7m.
Its estimated gross profit during the second quarter was US$71.9m compared to US$67.2m, a year-on-year increase of 7.1%. The company estimated its operating profit during the second quarter as US$69.8m compared to US$63.7m for the corresponding quarter of 2011, an increase of 9.6%.
Over the course of the six months to 30 June 2012, Southern Province estimates that its net profit will be in the region of US$154.6m compared to US$124.0m and that its operating profit will be US$146.7m compared to US$125.1m in the corresponding period of 2011.
Southern Province said that the rise in net profit for the second quarter and for the six month period was due to operation of the second production line at its Tahama plant, which had no unforeseen stoppages. There was also an increase in demand for cement in the local market.
The company noted that its second quarter 2012 net profit was marginally weaker than that of the first quarter of 2012 due to industry-wide pressure from the Ministry of Commerce to reduce cement prices.
