Saudi Eastern Cement posts 66 percent profit rise
The Eastern Province Cement Company (Sharqiya) has recorded profits of SR 162 million ($43.2 million) in the first nine months of 2001. The company’s profits totaled SR 108 million during the corresponding period the previous year, representing a 66 percent increase, reported Al-Hayat.
With cement being one of the best performing sectors during the first half of 2001, Eastern Cement has reported growth of 62.25 percent in net income over the corresponding period of the previous year. While gross profit has grown by 56 percent, operating profit has been increased by 66 percent, due to lower operating expenses.
Founded in 1982 under the name of the Saudi-Kuwait Cement Company with a paid-up capital of SR 645 million, the company name was changed to the present one in 1994 following the acquisition of the 45 percent stake held by Kuwaiti shareholders. It is now 70 percent owned by private Saudi investors and 30 percent by the government agencies.
Eastern Cement's long-term financial performance has been on a decline since 1995, in tune with industry decline. Year 2000 net income of SR 148 million is 52 percent lower than SR 306 million achieved in 1994, according to a CCFI report, the Consulting Center for Finance and Investment.
The company is based in Dammam and operates a cement plant at Ras Al-Khafji. The plant has the production capacity of 6,300 tones a day of cement. The company produces three million tons of cement and two million tons of clinker annually. — (Mena Report)
© 2001 Mena Report (www.menareport.com)