Yanbu Cement expects SAR 150 mln in revenue from export deal

Yanbu Cement’s revenue from the newly-announced export deal is forecast to reach SAR 150 million through until Mar. 2019, the company’s general manager, Ahmed Zugail, told Argaam in an exclusive on Tuesday.

The agreement was concluded with a Middle Eastern producer of cement, clinker and industrial materials, which will distribute cement in Egypt, Yemen and East Africa.

“Under the agreement, Yanbu Cement will be able to dispose of and cut inventory, improve profit margins and liquidity, and enhance efficiency of its working capital,” Zugail said.

The cement producer will dispatch cement and clinker through the Port of Yanbu, which is located 70 kilometers away from the plant.

Zugail added that he expects the company to export 75 percent of output within nine months starting next April, if market conditions are favorable based on the availability of logistic services between the plant, port and vessels.

The Tadawul-listed firm announced signing a one-year agreement on Mar. 24 to export 1 million tons of clinker and 0.5 million tons of cement starting April, Argaam reported.