Najran Cement profits suffer steep fall

Najran Cement (Saudi Arabia) posted a net profit of SAR61.08m (US$16.29m) in the first quarter of 2016, registering a decline of 33.6 per cent from SAR92m (US$24.53m) in the same period in 2015.

The profit slump was due to decreased sales and production in combination with a rise in the cost of imported clinker used in the manufacture of cement, Najran said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

It added that rising general and administrative expenses despite an increase in average selling prices and lower selling and distribution expenses and Zakat provisions also contributed to the profit decline.