Saudi Arabia: Southern Province Cement has reported a 9.6% rise in quarterly profits, citing the start-up a second production line at its Tahama plant and increased demand from local markets.
Saudi Arabia's biggest cement producer by market value posted a second-quarter net profit of US$69.9m for the quarter ending on 30 June 2012, compared with US$63.7m for the same period in 2011. However profit was down by 7.75% from the first quarter of 2012, when it was US$75.7m. The company attributed this to instruction by the ministry of commerce and industry decreasing the price that t it is able to sell cement at.
Meanwhile, Saudi Cement Co posted a net profit of US$77.4m for the second quarter, a rise of 36% year-on-year. It cited growing domestic demand for cement and clinker. The Saudi construction sector has been boosted over the past year by ramped-up government spending, including a pledge to build a quarter of a million new houses as well as schools and hospitals.
Saudi Cement Co's profit fell by 10.9% compared to the first quarter of 2012, when it was US$86.8m. The company blamed the decrease on a decline in sales.
