Southern Province Cement Co. (SPPC) holds the largest market share between 13 percent and 14 percent, its chief executive officer Safar bin Dhufayer told Argaam in an exclusive on Wednesday.
The company also topped peers in terms of productivity, as the total capacity of its three plants – including seven production lines – reached 30,000 tons daily.
“Demand for cement in the southern region was strong compared to others, thanks to urbanization activities, along with other public and private projects,” Dhufayer said.
The market witnessed a price war among cement producers in 2017-2018, as weak demand at that time led some firms to offer discounts in order to garner the largest possible share amid limited demand.
While some firms incurred losses, they reverted to a pricing mechanism that mainly relies on supply and demand.
“We have not drifted towards price discounts, but rather aimed to maintain our position,” Dhufayer added, noting “market conditions have become better now.”
Southern Cement’s total debt currently stands at nearly SAR 500 million. The company is expected to repay all debts by 2025 through quarterly installments that range between SAR 15 million and SAR 20 million.
In addition, the company reached an agreement with a lender to cut loan interest, as payments are made as scheduled, Dhufayer concluded.
SPPC’s second quarter net profit after zakat and tax more than doubled YoY to SAR 91 million, Argaam reported.
Comments
{{DisplayName}}
{{ElapsedTime}}