Arabian Cement writes off SAR 15 mln investment losses

26/04/2015 Argaam - Exclusive

Arabian Cement Co. (ACC) said it wrote off SAR 15 million in losses for its Jordan-based affiliate Ready Mix Concrete and Construction Supplies (RMCC) in first quarter of this year, according to its detailed financial statement.

 

The losses cannot be written back or reversed, it added.

 

The company owns a 36.67 percent stake in RMCC at a total value of SAR 80.6 million.

 

In 2009, ACC had taken a SAR 50 million goodwill impairment charge to account for the steep decline in RMCC’s net earnings and sales.

 

The table below illustrates RMCC financials since it was acquired by Arabian Cement.

 

Excluding these non-recurring losses, Arabian Cement's net earnings in Q1 would have risen by 26 percent year-on-year to SAR 210 million.

 

 

RMCC figures (SAR mln)

Investment B/V

Arabian Cement's stake

RMCC net profit

Year

99.83

6.56

17.89

2014

95.98

4.11

11.22

2013

98.38

2.43

6.62

2012

96.64

(1.05)

(2.86)

2011

96.53

(0.99)

(2.70)

2010

97.51

(0.41)

(1.11)

2009

147.44

2.13

5.82

2008

 

On the other hand, Qatrana Cement Co., which is 86.7 percent owned by Arabian Cement, reported record-high interim results for first quarter of 2015. It generated SAR 32.2 million net earnings, or 16 percent of ACC’s total profit.

 

Qatrana Cement figures (SAR mln)

Net profit*

Revenue

Period

32.21

85.78

Q1-2015

26.65

85.87

Q4-2014

22.65

79.15

Q3-2014

26.01

106.34

Q2-2014

19.48

75.48

Q1-2014

(194.6)

58.26

Q4-2013

(73.37)

39.15

Q3-2013

(5.12)

56.10

Q2-2013

(1.00)

53.50

Q1-2013

(11.69)

90.61

Q4-2012

(9.12)

112.43

Q3-2012

(94.85)

80.34

Q2-2012

(13.86)

60.94

Q1-2012

(36.14)

49.65

Q4-2011

(11.43)

47.07

Q3-2011

(15.48)

56.84

Q2-2011

(3.22)

--

Q1-2011

*After excluding minority rights

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