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Improvement in selling prices, along with a rise in exports contributed towards the increase of the profits for Yanbu Cement Co. in 2019, CNBC reported, citing CEO Ahmed Zugail.
“The company exported 2.7 million tons in 2019 compared to 1.4 million tons in 2018, which helped improving utilization rates, cutting costs and maintaining stock inventory, hence boosting liquidity and offsetting other incomes,” Zugail said.
He also added that Yanbu Cement is the largest exporter of clinker in the Kingdom, accounting for 45% of the total exports, mainly to Africa, Yemen and Bangladesh.
“The company is working towards maintaining its exports levels and exploring new markets as other countries are witnessing dumping from East Asia,” Zugail noted.
Commenting on Coronavirus impact on the company’s sales, he explained that exports were affected in terms of logistics, also adding that the cement producer is currently focusing on improvement in local market, backed by subsidized housing projects.
He also expressed his optimism that demand from mega projects will improve in the future.
According to data compiled by Argaam, Yanbu Cement posted a net profit of SAR 257.8 million for the fiscal year 2019, a more-than-double increase from year-earlier period.
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