Najran Cement’s sales likely to drop further in 2017: CEO

Najran Cement expects to see its sales fall by 10 to 12 percent this year, the company’s chief executive Badr Al Johar told CNBC Arabia on Monday.

The company last week attributed its fourth quarter net profit plunge to lower sales. The cement maker made SAR 14.8 million for the quarter, a 73 percent year-on-year decline.

Meanwhile, the company is still waiting approval from Saudi Arabia’s ministry of commerce and investment for its cement export license, Al Johar said.

Although, the high export prices would make it difficult to compete abroad, exports would help the company reduce its inventory, which at 3 million tons is equal to a full year’s sales, he added.

A Saudi ministerial committee recently approved a new mechanism under which cement and steel exporters would have to pay the difference in fuel costs between the local and international market.

Cement export fees are estimated between SAR 85 and SAR 133 per ton, while steel export charges were estimated between SAR 58 and SAR 390 per ton.