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GM Jamal Al-Amer
Al Jouf Cement Co. incurred losses in 2020 on allocating provisions for old investments at a total value of SAR 99 million, General Manager Jamal Alaamer told Argaam.
These provisions were calculated according to the directives of the board of directors to treat such investments, he noted.
These old investments have been related to Eastern Industrial Co. since 2007, in addition to credit provisions represented in the value of selling the share of Al-Jouf Investments Co., owned by Al-Jouf Cement in Across Bridges Co. in 2012. All of these investments were amortized, Al-Amer noted.
Al Jouf Cement saw a significant increase in total profit and operating income in 2020 compared to a year earlier, backed by higher sales volume and value, as well as a decrease in the cost of sales per ton amid increased production, he noted, expecting this to have a positive impact over the coming periods.
The company's market share reached 3.16% by the end of 2020. Demand for cement will likely remain strong in 2021 amid stable average selling prices.
Elsewhere, he said that the alternative fuel project is in its final stages and is awaiting the arrival of the main contractor's engineers to oversee testing and trial operations that were delayed, due to the COVID-19 precautionary measures and travel restrictions.
Al Jouf Cement earlier reported a net loss after Zakat and tax of SAR 73.3 million for 2020 from a net profit after Zakat and tax of SAR 5.3 million in 2019.
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