Riyadh – Mubasher: Najran Cement on Monday reported a net profit drop of 52% year-on-year for the third quarter of 2016.
The cement company posted a profit of SAR 15.36 million ($4.1 million) in Q3-16 compared to SAR 32.07 million ($8.55 million) in the year-ago period.
Profits fell 54.3% on a quarter-on-quarter basis, according to a filing to the Saudi Stock Exchange (Tadawul).
Najran attributed its quarter-on-quarter profit decline to lower sales volumes on the back of slowing construction activity, resulting in lower demand on cement added to higher energy prices.
The company registered the profit fall despite lower selling and distribution expenses, Zakat as well as higher other revenues.
As for the nine-month period ended 30 September 2016, the Saudi cement company reported a net profit of SAR 110 million, down 45.5% from SAR 201.89 million in the same period in 2015.
In Q2-16, Najran Cement posted a 56.8% year-over-year drop in net profit to SAR 33.6 million ($8.96 million) from SAR 77.83 million ($20.76 million), also on lower sales volume.
