Najran Cement set to maintain semi-annual dividend payment: CEO

Najran Cement is set to maintain semi-annual dividend payment amid the current market conditions, Chief Executive Officer Abdulsalam Abdullah Aldraibi told Argaam.

“Najran Cement managed to cut costs, restructure its financial position and increase cash flows,” he added.

The company reported improved performance over the last two years, which reflected positively on the profitability, as well as cash flows, Aldraibi said, adding that the cement producer has been working over the past 12 months on bolstering its financial position.

Najran Cement managed to refinance an outstanding loan and paid off significant portion of credit facilities before maturity, he explained.

Meanwhile, the cement industry saw significant growth in H1 2020, as all market players reported strong earnings during the first six months. This growth was sustained until August 2020, despite the repercussions of the COVID-19 outbreak.

“We expect the cement industry to maintain growth until year-end, but not at the same momentum,” he noted.

This market growth is considered normal after the aggregate sales revenue of cement companies’ hit a record low over the past two years, driven by the resumption of operations, liquidity injection, and investments in housing, as well as government projects, at higher rates compared to last year, Aldraibi noted.

Najran Cement’s board of directors recently recommended cash dividend at SAR 0.75 a share for H1 2020, the first dividend payment since H1 2016, Argaam reported.