Riyadh – Mubasher: Riyad Capital expected that five Saudi cement companies’ profits will retreat 47% year-on-year in the first quarter of 2017.
The firms’ profits would fall 6% quarter-on-quarter to reach SAR 541 million, according to a research published by the investment company on Tuesday.
Riyad Capital attributed its expectation to the cost pressures, noting that the decline will be mainly from Yamama Cement and Yabnu Cement, which are facing pressures since the third quarter of 2016.
Yamama Cement’s profits are seen to shed 70% to SAR 44 million in Q1-17, while Yanbu would suffer a 44% decline in profits to reach SAR 102 million.
As for Saudi Cement, Southern Cement, and Qassim Cement, the report expected profits to decrease 41% to SAR 155 million, 47% to SAR 150 million, and 34% to SAR 89 million, respectively.
