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Logo of Umm Al-Qura Cement Co. (UACC)
Umm Al-Qura Cement Co. (UACC) approved to replace the damaged unit of Cement Mill No. 1 with a new one that was previously purchased from the manufacturer as a strategic spare part instead of repairing the damaged components.
The process of supplying and installing the new unit will be completed by the end of October, and the mill will resume normal operations, the company said in a statement to Tadawul.
UACC expects capital losses of SAR 1.92 million from excluding the damaged unit and will cancel the previously allocated provision for maintenance at SAR 2.51 million.
Moreover, the related financial impact also includes the new unit price that was previously purchased from the manufacturer at EUR 1.43 million plus shipping and installation costs.
UACC also raised expectations for a drop in net profit by additional SAR 1.2 million this year, from previous estimates, as the total number of expected days required for the new unit supply and installation was increased to 31.
Any related updates will be duly announced, the cement producer added.
In October 2022, UACC announced that a major technical failure in a primary component of Cement Mill No. 1 suspended its operations and reduced sold quantities by 1,161 tons per day, Argaam earlier reported.
In November, the company expected a preliminary decline of SAR 10.8 million in net profit for 2023.
Related News
Umm Al-Qura Cement initially expects SAR 19 mln drop in 2022, 2023 net profit on cement mill technical failure |
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