GCC cement revenues up 7% to $6.155 bln in 2014

Cement companies in the Gulf Arab nations posted a seven percent year-on-year increase in consolidated revenues to $6.155 billion in 2014, according to a study conducted by Argaam.

Saudi cement manufacturers accounted for more than 58 percent, or $3.6 billion of the reported revenues. Companies in the United Arab Emirates contributed almost 18 percent to total revenues last year.

Kuwait was also on top with a rise of 28 percent, while the UAE ranked second with 15 percent.  

Saudi cement producers are currently leading expansions among their Gulf neighbors. The kingdom’s Umm Al-Qura Cement Company is expected to complete its integrated plant by early 2016 with almost seven production line expansions.

The sector made a consolidated net profit of $2.1 billion, five percent higher than that of 2013.

Saudi cement firms accounted for over 77 percent of the industry’s consolidated net profit, generating $1.649 billion.

UAE cement producers posted the highest growth, with 18 percent to $106.5 million, followed by Saudi manufacturers with a growth of six percent.

On corporate level, 16 companies generated higher profits in 2014, seven of which are operating in Saudi Arabia. However, 13 companies saw their profit decline.

Saudi-based Arabian Cement Co. (ACC) topped the list with a 237 percent profit surge. The sizable increase came on improved performance of its Jordanian unit.

Its financial results for last year reflected asset and property impairments of $77.6 million.

Hail Cement took the second spot, as its net income hiked 191 percent, thanks to higher sales volumes and output.

Umm Al-Qaiwain Cement Industries— listed on Abu Dhabi Securities Exchange (ADX— decreased the most in terms of profit. It reported a 76 percent drop y-o-y on incurring $3 million in losses from asset revaluations.

Kuwait’s Hilal Cement also reported losses, hurt by higher costs of sales and lower profit margins.