Lower revenues and higher costs hurt QNCC net profit

Qatar National Cement (QNCC) reported a seven per cent decline in 2012 net profit on the back of lower revenues and higher costs.

Net profit for the 12 months to the end of December 2012 fell to QAR425.31m (US$116.8m) while revenues were down three per cent to QAR964.28m. The company also registered an eight per cent rise in selling and distribution costs to QAR8.64m, general and administrative expenses were up by seven peer cent and an impairment loss of five

Located at Umm Bab, 82km from Doha on the west coast, QNCC’s plant currently has a clinker capacity of 3.927Mta and a cement capacity of 5.115Mta, after Kiln Line No 4 was completed in 2010, adding 5000tpd of clinker and 5500tpd of cement capacity. 

The company has set its sights on increasing capacity and enabling Qatar to become self-sufficient in cement supply in the near future. In August 2012 QNCC launched a tender for its fifth line. In November 2012 it appointed Belgium-based Basse Sambre as project consultants.