Saudi Arabia’s Qassim Cement reported a profit of SAR70.4m (US$18.8m) in 3Q16 and an operating profit of S AR78.3m. The results were lower than expected, according to Al Rahji Capital, who had estimated them at SAR86m and SAR91m, respectively.

"Earnings declined mainly due to sharp drop in gross margin to 49.3per cent (vs 60.1 per cent in 3Q15) which in turn was due to lower sales volume and average realised price/tonne,” Al Rajhi Capital reported.

The fall in profits was attributed to higher cost of goods as fuel prices rose as well as a drop in demand as construction activity decelerated.

Revenues reached SAR171.2m as the company’s sales volume declined 8.7 per cent YoY in July and August to 534,000t.