Riyadh – Mubasher: Saudi Cement Company’s results beat the estimates of Al Rajhi Capital, where it posted net profits of SAR 200 million in the third quarter of 2016.

The company’s operating profit fell 1.4% year-on-year to SAR 207million, while gross and operating margins improved to 61.3% and 55.2%, respectively.

Saudi cement’s revenue declined 5.8% year-on-year to SAR 375 million, mainly due to lower sales volume as well as a decline in year-on-year average realized price.

The Saudi-listed company recorded local sales volume of 1.4 million tonnes and 107,000 tonnes as export sales.

“We anticipate the company to benefit from its large capacity and inventory to export to GCC markets if Ministry of Commerce lifts the ban on exports,” Al Rajhi Capital said.

Al Rajhi Capital maintained its overweight valuation on Saudi Cement Company, with a target price of SAR 56 per share.