JEDDAH — Saudi Cement reportedly dropped 11.8% in net profit for 2Q15, attributed to lower local sales. The figure for the three months to end of June was SR254 million, down from SR288 million in 2Q14. It attributed the fall in net profit to lower local sales without elaborating. This was below analyst forecasts of SR261.4 million. Another Saudi producer Hail Cement also reported a fall in profit, with earnings at SR28.6 million in 2Q15 down from SR46 million in 2Q14. Earnings were down 18.44% for the first half. The decline was put down to increased costs due to a maintenance shutdown and a decrease in production volumes. In April, it was reported that some companies could reduce production due to the failure to lift the export ban that was imposed in 2012. Cement demand is very healthy in Saudi Arabia, yet there is reported to be a surplus of 22 million t in the domestic market. — SG
