Al Jouf Cement average selling prices rise 35% in Q1: CEO

Abdul Karim Al Nuhair, CEO of Al Jouf Cement Co.

Al Jouf Cement Co.'s average selling prices of cement grew year-on-year (YoY) by 30-35% in the first quarter of 2023, CEO Abdul Karim Al Nuhair told Argaam.

The top executive indicated that the volume of sales amounted to 381,000 tons in Q1 2023, compared to 352,000 tons in Q1 2022. He added that the volume of the company’s inventory of clinker and cement amounted to 856,000 and 58,000 tons, respectively, by the end of the three-month period.

As for the General Authority for Competition’s penalties against 14 cement companies in the Kingdom, including Al Jouf Cement, Al Nuhair clarified that the violation took place in 2018, with no impact on future financials as a provision was earmarked in 2022 in this regard.

The respective penalty will be paid on the date agreed upon with the authority, he continued.

"As stated in its previous explanatory disclosure, the company will take all legal measures against those responsible for this violation," he added.

The CEO also explained that the company's cost-control project is a key initiative that contributes to increasing profit. Al Jouf Cement started implementing this project as of September 2022 and will continue for three years.

He pointed out that the company's debts exceeded SAR 820 million, of which SAR 626 million are Islamic financing. He noted that the increase in the Saudi Arabian Interbank Offered Rate (SAIBOR) pushed financing costs higher.