By: Asel Bin Taleb

Riyadh-Mubasher: Yanbu Cement is projected to report less sales in the second six months of 2015 as compared to the first half of the year, said general manager Ahmed Zugail.

Zugail noted that the company’s sales in the first six months increased 8% annually as compared to the same period of 2014.

The general manager added that sales usually decrease in the third quarter, and this year with Ramadan and Haj season approaching. He hoped that after Haj season the company will regain the same levels witnessed in the beginning of the year.

Yanbu achieved net profits of SAR 246 million in the second quarter of 2015 as compared to SAR 241 million in the same period of 2014, a rise of 2.07%.  The company’s operating profits, transactions, and total earnings improved 5%.

The first six-month earnings grew 1.57% year-on-year from SAR 446 million to SAR 453 million.

Yanbu has reserves of at least four-month sales, Zugail said, noting that cement companies should maintain a reserve that would last between 45 to 60 days.

The increase in such reserve can result in creating nonstrategic stock as well as hoarding money, thus, investors would lose out of the accumulated money, said general manager.

Zugail said that the decision of exporting cement will be resolved in the near future, under conditions of specifying the rate of exports as well as lifting subsidy from exported cement.

However, Zugail believed that such decision would not be worthy to Saudi cement companies.