Yanbu Cement has reported a 17.4 per cent YoY decline in revenue to SAR242m (US$64.53m) in the opening quarter of 2022. However, this was still above the SAR224m estimated by Al Rajhi Capital. Gross profit over the same period contracted by 33 per cent YoY, while operating profit fell by 41.4 per cent, according to Trade Arabia.
The Saudi company attributes the decline to a 6.7 per cent fall in cement volumes, which came in at 1.3Mt in the 1Q22. This compares to an average contraction in volumes of 10.1 per cent for the industry as a whole. Cement prices also fell over the quarter, further impacting the company’s performance. Gross margins for the three-month period declined to 22.5 per cent, compared to 27.8 per cent in the 1Q21.
According to Al Rajhi Capital, an uptick in the execution of mega and giga projects is expected to fuel a slight recovery in both cement volumes and prices in the 2H22.
Yanbu Cement announced that it would be shutting down for its fourth production line for scheduled maintenance on 22 May, 2022 for approximately 25 days, according to reports in Mist News. The maintenance is expected to contribute to raising the reliability level and achieving the company’s future operational plans.
