Displaying items by tag: Saudi Arabia

Saudi Arabia: Southern Province Cement Company (SPCC) registered revenues of US$76.4m in the second quarter of 2021, a year-on-year fall of 15.3% compared to US$90.2m a year earlier. SPCC’s revenue was impacted by a 10.9% year-on-year fall in cement sales volumes, which came to 1.4Mt/yr for the quarter. SPCC’s gross and operating profits fell by 27.2% and 28.3% respectively year-on-year. The fall in profitability was at the back of lower volume and the resulting fall in operating leverage.

Cement volumes across the whole of Saudi Arabia fell grew by 21.3% year-on-year, while the Southern region saw sales fall by 5.1% year-on-year. Thus, SPCC underperformed relative to its peers by this metric.

Market Analyst Al Rajhi Capital said “Going forward, we expect cement volumes of SPCC to remain under pressure in the third quarter of 2021 on the back of lower construction activity due to uncertainties relating to the new building permit norms and shortage in labour.”

Bahrain: Saudi Arabia-based Saudi Cement has increased its share in its Bahraini subsidiary United Cement Company (UCC) by 37% to 100%. The purchase of additional shares cost it around US$7.5m in May 2021. UCC is an importer and distributor of bulk cement. It operates a marine terminal and was founded in 1999.

Saudi Arabia: Qassim Cement plans to build a new 10,000t/day production line at its Buraydah cement plant to replace some of the site’s existing lines. Construction will begin in the first half of 2022. The company will announce the cost of the project after completing preliminary studies.

Saudi Arabia: Saudi Cement’s consolidated sales totalled US$207m in the first half of 2021, up by 3.9% year-on-year from US$199m in the first half of 2020. Its net profit for the period took an 8.2% drop to US$54.9m from US$59.8m.

Saudi Arabia: Najran Cement’s revenue grew by 13.7% year-on-year to US$82.3m in the first half of 2021 from US$74.1m in the same period in 2020. Its net profit after zakat and tax increase by 27.9% to US$24.9m from US$19.5m. It reported lower sales and profit in the second quarter of 2021 due to Ramadan and Eid al-Fitr.

Saudi Arabia: Yanbu Cement’s first-half sales were US$143m in 2021, up by 23% year-on-year from US$116m in the first half of 2020. Net profit fell by 11% to US$30.7m from US$34.5m. The company said that a local price drop and an increased cost of sales offset increased sales to yield the drop in profit.

Egypt: Saudi Arabian-based Mohammed Hassan Al Naqool Sons has started pilot production at its Cement Industries subsidiary based in El Alamein. The project has an investment of around US$5m. It will manufacture cement-based products, including blocks and concrete. Commercial production at the site is expected to start in the third quarter of 2021.

Saudi Arabia: Southern Province Cement Company plans to upgrade its Jizan cement plant in Abha with a new 10,000t/day clinker production line to replace the plant’s existing clinker lines. The producer plans to launch the project in mid-late 2021.

Saudi Arabia: Arabian Cement has placed an order with Denmark-based FLSmidth for the supply of equipment for an upgrade of its Rabigh cement plant. The order includes new DDX top cyclones, a quenching chamber and an ABC Cooler Inlet. Installation and commissioning is expected to be during the fourth quarter of 2021.

Arabian Cement’s chief executive officer Badr Osama Johar said, “With FLSmidth having provided the original line, they were the obvious candidate for the upgrade - we wanted a trusted partner who knows the ins and outs of the plant and is able to secure the success of the upgrade.” The producer previously engaged the company for the supply of its Rabigh plant’s kiln in 2008.

Saudi Arabia: Yamama Cement plans to transfer and install the seventh production line from its old plant in the south of Riyadh to the new plant’s location in Northern Halal in Al-Kharj governorate of the Riyadh region. The line has a clinker production capacity of 10,000t/day. Following the completion of the move by the end of 2024 the new plant will have a capacity of 30,000t/day. The cement producer said that cost of the move would be funded from the available company's resources.