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Shoeil Jarallah Al Ayed, Riyadh Cement CEO
Riyadh Cement Co.’s H1 2022 earnings decline came due to lower sales and a significant drop in product prices, which weighed on revenue, CNBC Arabia reported, citing Chief Executive Officer (CEO) Shoeil Al Ayed.
“We are working to boost the balance between sales volumes and prices to maintain the best performance,” Al Ayed said, adding that demand is still at a reasonable level, and is forecast to improve in H2 2022.
The cement producer has a current market share of 5.5%, which is lower compared to the last year.
Riyadh Cement’smarket share is expected to rise to around 6% on stronger demand as the Central Region has larger strategic and capital projects, and this will likely reflect positively on the company.
Riyadh Cement has 1 million tons of black cement, which is quite reasonable compared to the Kingdom’s total stockpiles, said Al Ayed, adding that the company is constantly trying to cut its stockpiles.
Meanwhile, it has 350,000 tons of white cement, which is deemed sufficient. The white cement prices are two times black cement prices, Al Ayed indicated.
Riyadh Cement reported a net profit of SAR 85.1 million in H1 2022, a slump of 47% from SAR 160.4 million in the year earlier period, Argaam reported.
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