Southern Cement to see demand growth in coming period; market share hits 11.44%: CEO

Aqeel Kadasah, CEO of Southern Province Cement Co.

Southern Province Cement Co. is expected to witness demand growth during the coming period, which will reflect positively on prices, CEO Aqeel Kadasah told Argaam.

He stressed that major projects have a positive impact on the cement sector in general.

The profit decline in Q4 2022 was due to an 8% fall in sales to 1.54 million tons, compared to 1.67 million tons in Q4 2021, the CEO said, noting that the selling price also declined by 8% year-on-year (YoY).

Cement stock reached 108,780 tons in Q4 2022, while clinker stock amounted to 3.38 million tons.

The company's market share of cement sales amounted to 11.44% by the end of 2022, the CEO said, adding that its loans stood at SAR 257 million by the end of 2022.

Commenting on Jazan plan, Kadasah said the cement producer completed studying technical and financial bids and it is currently in the final stages of project awarding.

He noted that the contract will be signed after completing the necessary measures.

Southern Cement reported a 30% drop in 2022 net profit to SAR 301 million, from SAR 429 million in 2021. Net profit in Q4 2022 fell 36% YoY to SAR 62.6 million, according to data available with Argaam.