18 August, 2019

Project boom triples Saudi cement firms' H1 profits

Firms also record Q2 2019 profits against losses in Q2 2018

Image used for illustrative purpose. Pouring concrete to the foundations of the building.

Image used for illustrative purpose. Pouring concrete to the foundations of the building.

Gettyimages

18 August 2019
Stock exchange-listed Saudi cement companies nearly tripled their net profits in the first half of 2019 due to a sharp recovery in public project activity, a newspaper in the largest Arab economy said on Sunday.

From around 351.6 million Saudi riyals ($93.7 million) in the first half of 2018, their net earnings soared to around 11.1 billion riyals ($293.3 million) in the first half of 2019, the Arabic language daily Al-Madina said.

Citing corporate balance sheets, the report showed the listed firms recorded a net income of nearly 479.5 million riyals ($127.8 million) in the second quarter of 2019 compared to losses of nearly 47.2 million riyals ($12.58 million) in the second quarter of 2018.

"Reports by some companies said the improvement in their performance this year was due to a surge in government spending on projects and a sharp expansion in housing projects in the Kingdom," the paper said, adding that most Saudi cement producers suffered from a surge in stocks last year due to project downturn.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)


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