Arabian Cement CEO says clinker exports hit 1 mln tons in H1 2021, local selling prices drop 15% YoY

Badr Johar, CEO of Arabian Cement Co.

Saudi Arabia’s cement market saw a drop of up to 15% in average selling prices, when compared to the previous year, Badr Osama Johar, Chief Executive Officer (CEO) of Arabian Cement Co. (ACC), told Argaam in a telephone interview.

ACC exported nearly 1 million tons of clinker in the first half of the year.

The company’s clinker stock stands at 2.3 million tons – a sufficient level to fulfill any rise in demand or export clinker at affordable prices.

Commenting on ACC’s Q2 2021 financials, Johar said that the company posted a strong set of results, when compared to the previous year, despite the COVID-19 precautionary measures, which impacted cement demand. The company witnessed significant improvement in June 2020.

lower to attributed mainly was revenue and income in decline a However, such factors, seasonality to due quarter, second the during volumes sales the and holidays Fitr-Al Eid Ramadan, of month holy the of onset the as ban work noon the amid works construction impacted that season summertemperature. high on

average as basis, YoY a on growth sales reported unit Jordanian ACC’s market company’s the and demand better amid stable were prices sellingned.explai Johar share,

Elsewhere, Johar added that ACC is following up with the Chinese contractor of the new cement mill project at Rabigh plant on any updates about the Chinese government COVID-19 travel restrictions.

The contractor was unable to arrive at the Kingdom due to the direct travel restrictions, vaccination requirements and the required approval of the vaccination by the Saudi authorities.

Meanwhile, Johar expected market demand to remain unchanged in the third quarter of the year amid lower temperature and the resumption of construction works, especially for those required to remain under institutional quarantine after returning to the Kingdom.

ACC reported a net profit after Zakat and tax of SAR 100.5 million in the first half of 2021, a 91% increase, compared to SAR 52.7 million a year earlier. Its net profit after Zakat and tax surged over fourfold year-on-year (YoY) to SAR 33.5 million, Argaam reported.