Southern Cement posts ‘solid profit’ in Q1 despite tough conditions: CEO

Southern Province Cement Co.’s (SPCC) Q1 2018 net profit was strong, compared to local market peers, Safar Dhufayer, the company’s chief executive, told CNBC Arabia on Monday.

“Despite the low profit amid the current market conditions, weak demand and fierce competition, the company posted solid results,” Dhufayer said.

Southern Province has the highest output and sales among local peers, however, 17 cement producers are vying in the market.

The Kingdom’s cement sales are expected to grow, backed by new government, and private projects.

“The company’s dividends has declined since almost a year, and are likely to remain low in 2018. We maintain our dividends but not at the same momentum for the period between 2013 and 2015. The company is keen to maximize shareholder dividends,” Dhufayer added.

SPCC’s first-quarter net profit declined 2.9 percent year-on-year (YoY) to SAR 102 million.