Al Jouf Cement posted weak fourth-quarterly financial results, with earnings declining by 74.59 per cent YoY and 16 per cent QoQ to SAR6.1m (US$1.6m). The results missed Al-Rajhi Capital estimates of SAR22m and consensus forecast of SAR20m.
Al-Rajhi believes that the company’s weak performance was a result of a decline in the value and volume of sales due to sluggish cement demand during the quarter following government’s initiatives to expel 2m illegal expatriate labourers which led to the suspension of construction projects and delays in the transportation of cement.
The cement producer was also affected due to maintenance shutdowns and an increase in general and administrative expenses.
FY13 net earnings also fell 51.19 per cent YoY from SAR 107.1m to SAR 52.28m.
