Yanbu Cement’s Q2 results in line with estimates: Aljazira Capital

Yanbu Cement Company’s second quarter financial results are in line with estimates, said Aljazira Capital, the investment arm of Aljazira Bank, and can be attributed to higher production efficiency and reduced cost of sales.

Aljazira maintained its “overweight” rating for the company with a target price of SAR 79.4 per share.

The investment firm expects the company’s sales in 2015 to continue its growth trajectory, due to an expected higher utilization rate of 98 percent.

“We expect cement dispatches to stand at 6.9MT, as compared to 6.3MT in 2014,” Aljazira Capital said.

The cement maker’s strong financial position and cash flow may be sufficient to fulfill its debt obligations and continue a healthy dividend rate, as well as implement future expansion plans, Aljazira Capital added.

Yanbu Cement made a Q2-2015 net profit of SAR 246 million, 2.1 percent higher year-on-year.