Local demand down 4%, improvement in Q2 ‘unlikely’: Southern Cement CEO

Aqeel Kadasah, CEO of Southern Province Cement Co.

Southern Province Cement Co.’s (SPCC) CEO Aqeel Kadasah said local market demand declined 4% in Q1 2024, adding that demand in Saudi Arabia will not improve in Q2 2024 as it coincides with the holy month of Ramadan and the Hajj season.

Demand will hopefully get stronger in H2 2024, Kadasah added in an interview with Argaam.

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Commenting on Q1 2024 financial results, Kadasah said the Q1 2024 earnings increase of 27% was spurred by improved selling prices despite a slump in sales volumes to 1.22 million tons.

SPCC inventory stockpiles amounted to 4.7 million tons in Q1 2024, with the company holding a 10% market share, the CEO added.

Q1 2024 net profit stood at SAR 62 million, an increase of 27% from SAR 49 million a year earlier.