DUBAI: Saudi Cement met analysts’ estimates as it reported a two per cent decline in second-quarter net profit on Monday due to a drop in sales and rising power costs.
One of the kingdom’s largest cement firms by market value, it made a net profit in the three months to June 30 of 249 million riyals ($66.4 million), down from 254 million riyals in the corresponding period of 2015, according to a bourse filing. The average estimate of five analysts polled by Reuters was for a quarterly profit of 243.2 million riyals.
Saudi Cement attributed the net profit slip to a decline in sales, and an increase in the costs due to rising power prices. It did not elaborate further, however, the company had said previously that it expects the fuel and electricity price hikes announced in the 2016 government budget to increase its production costs by 68 million riyals this year.
