Riyadh - Mubasher: Arabian Cement Company reported a decline in net profit in in the fourth quarter of 2016 by 84.36% year-on-year, and 75.31% quarter-on-quarter, according to a bourse filing.
Profits reached SAR 24 million ($6.4 million) in Q4-16 compared to SAR 153.5 million ($40.93 million) in the Q4-15, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Monday.
The decrease in gross profit by SAR 125 million is a result of a decline in sales volume and prices, in addition to the increase in general and administrative expenses by around SAR 3 million, the statement indicated.
Total net profits for the year 2016 went down by 18.41% to SAR 489.6 million compared to SAR 600.1 million in 2015.
The decline in annual gross profit by SAR 172 million is attributed to a fall in sales volume and prices, on another hand other net other income increased by SAR 22.6 million that included insurance claim of SAR 17 million for business interruption related to cement mill number 3 fire accident in 2012, the statement explained.
The company also had written-off SAR 15 million in relation to Goodwill in associate company in Jordan during previous year, it added.
