Cement companies in the Gulf Arab nations posted a seven percent year-on-year increase in consolidated revenues to $6.155 billion in 2014, according to a study conducted by Argaam.
Saudi cement manufacturers accounted for more than 58 percent, or $3.6 billion of the reported revenues. Companies in the United Arab Emirates contributed almost 18 percent to total revenues last year.
Kuwait was also on top with a rise of 28 percent, while the UAE ranked second with 15 percent.
Saudi cement producers are currently leading expansions among their Gulf neighbors. The kingdom’s Umm Al-Qura Cement Company is expected to complete its integrated plant by early 2016 with almost seven production line expansions.
|
GCC Cement Sector's Consolidated Revenues (USD mln) |
|||
|
Change |
2014 |
2013 |
Country |
|
+28% |
630.5 |
498.5 |
Kuwait |
|
+15% |
1,081.7 |
935.4 |
UAE |
|
+8% |
437.7 |
404.2 |
Qatar |
|
+4% |
3,621.9 |
3,492.0 |
Saudi Arabia |
|
-- |
383.3 |
383.5 |
Muscat |
|
+7% |
6,155.1 |
5,713.6 |
Total |
The sector made a consolidated net profit of $2.1 billion, five percent higher than that of 2013.
Saudi cement firms accounted for over 77 percent of the industry’s consolidated net profit, generating $1.649 billion.
UAE cement producers posted the highest growth, with 18 percent to $106.5 million, followed by Saudi manufacturers with a growth of six percent.
|
GCC Cement Sector's Consolidated Net Profits (USD mln) |
|||
|
Change |
2014 |
2013 |
Country |
|
+18% |
106.5 |
90.1 |
UAE |
|
+6% |
1,649.9 |
1,556.5 |
*Saudi Arabia |
|
+1% |
172.9 |
170.8 |
Qatar |
|
(1%) |
84.5 |
85.5 |
Kuwait |
|
(5%) |
106.8 |
112.1 |
Oman |
|
+5% |
2120.6 |
2015.0 |
Total |
|
*Excluding Umm Al-Qura Cement Company for non-commercial operation
|
|||
On corporate level, 16 companies generated higher profits in 2014, seven of which are operating in Saudi Arabia. However, 13 companies saw their profit decline.
Saudi-based Arabian Cement Co. (ACC) topped the list with a 237 percent profit surge. The sizable increase came on improved performance of its Jordanian unit.
Its financial results for last year reflected asset and property impairments of $77.6 million.
Hail Cement took the second spot, as its net income hiked 191 percent, thanks to higher sales volumes and output.
Umm Al-Qaiwain Cement Industries— listed on Abu Dhabi Securities Exchange (ADX— decreased the most in terms of profit. It reported a 76 percent drop y-o-y on incurring $3 million in losses from asset revaluations.
Kuwait’s Hilal Cement also reported losses, hurt by higher costs of sales and lower profit margins.
|
Net Profits of GCC-based Companies (USD mln) |
||||
|
Growth |
2014 |
2013 |
Country |
Company |
|
+237% |
172.4 |
51.2 |
Saudi Arabia |
Arabian Cement Company |
|
+191% |
39.2 |
13.5 |
Saudi Arabia |
Hail Cement |
|
+132% |
19.3 |
8.3 |
UAE |
Arkan Building Material |
|
+87% |
20.7 |
11.1 |
UAE |
Union Cement |
|
+80% |
3.9 |
2.1 |
UAE |
Ras Al Khaimah Cement |
|
+28% |
17.2 |
13.4 |
UAE |
Sharjah Cement Factory Colony |
|
+23% |
64.9 |
52.8 |
Saudi Arabia |
Najran Cement Company |
|
+21% |
99.6 |
82.4 |
Saudi Arabia |
Eastern Province Cement Company |
|
+12% |
16.1 |
14.4 |
Saudi Arabia |
Al Jouf Cement Company |
|
+11% |
30.5 |
27.7 |
UAE |
Al-Wataniya Cement |
|
+11% |
57.4 |
51.8 |
Qatar |
Qatari Investors Group |
|
+5% |
27.7 |
26.4 |
Kuwait |
Portland Cement |
|
+4% |
278.8 |
268.3 |
Saudi Arabia |
Southern Province Cement |
|
+5% |
12.7 |
12.1 |
UAE |
Pioneer Cement Industries |
|
+2% |
59.1 |
58.2 |
Saudi Arabia |
City Cement |
|
+1% |
57.8 |
57.2 |
Kuwait |
Kuwait Cement |
|
-- |
7.0 |
( 3.3 ) |
UAE |
Fujairah Cement Industries |
|
(0%) |
72.2 |
72.4 |
Oman |
Raysut Cement |
|
(2%) |
213.8 |
219.0 |
Saudi Arabia |
Yanbu Cement |
|
(3%) |
115.5 |
119.0 |
Qatar |
Qatar National Cement |
|
(4%) |
150.3 |
156.0 |
Saudi Arabia |
Qassim Cement |
|
(4%) |
286.8 |
299.7 |
Saudi Arabia |
Saudi Cement |
|
(12%) |
16.5 |
18.7 |
UAE |
Gulf Cement Company |
|
(13%) |
34.6 |
39.7 |
Oman |
Oman Cement |
|
(15%) |
53.3 |
62.6 |
Saudi Arabia |
Northern Region Cement |
|
(21%) |
36.7 |
46.3 |
Saudi Arabia |
Tabuk Cement |
|
(23%) |
178.9 |
232.1 |
Saudi Arabia |
Yamama Cement |
|
(38%) |
8.7 |
13.9 |
UAE |
Ras Al-Khaimah Co. for White Cement |
|
(76%) |
1.6 |
6.7 |
United Arab Emirates |
Umm Al Qaiwain Cement Industries |
|
-- |
(1.2) |
1.7 |
Kuwait |
Al Hilal Cement |
|
+5% |
2120.6 |
2015.0 |
-- |
Total |
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