Saudi Cement to write off unused kilns for 66m riyals in Q4

DUBAI: Saudi Cement Co will take an impairment charge of 66.2 million riyals ($17.6 million, Dh64.6 million) in the fourth quarter of 2015 as it writes off the value of two kilns that will remain out of operation indefinitely, it said on Tuesday.

Due to a rising trend for clinker inventory along with a ban on exports, the kilns are likely to remain non-operational “for the foreseeable future”, Saudi Cement said in a bourse statement.

They were idled because of high inventory and the absence of growth in Saudi demand, the company had said in September 2014.

At that time, it began recording depreciation charges for the kilns, but will now record their remaining value as a loss on its balance sheet.