Hail Cement sees 41% YoY 1Q revenue increase

Saudi Arabia-based Hail Cement reported a 41 per cent YoY rise in revenues to SAR68.6m (US$18.3m) in the first quarter of 2019.

“The main reason for the increase in net income in the current quarter compared to the same quarter last year is due to more sales quantity and better selling price,” the firm said in its filing to the Tadawul, the Saudi stock exchange.

The results come only months after a Saudi cement sector report by Al Rajhi Capital that said that cement demand in the Middle Eastern country would “continue to decline in 2019” as the government would limit capital spending and construction costs were rising.

“The government’s announced megaprojects, including Neom, Qiddiya, The Red Sea Project, and social housing [schemes] are likely to create an incremental demand only in the long-term, in our view,” Al Rajhi’s report added.