‎Yanbu Cement makes robust profit in Q2 2022, expects pricing pressures to remain: CEO

‎Yanbu Cement makes robust profit in Q2 2022, expects pricing pressures to remain: CEO

Yanbu Cement Co. (YCC) reported robust earnings for the second quarter of 2022, despite fierce competition in the Western Region’s markets, as well as the fall of the holy month of Ramadan and Eid holidays during the quarter, with no non-operating profit, CEO Ali Al-Ayed told Argaam in a phone call.

The strong performance was driven by consumers’ appetite for Yanbu Cement’s products, which are distinguished for high quality, improved selling prices and lower production costs amid increased clinker output, compared to the first half of 2021.

The company started to reap fruits from its strategy that aims to maintain production sustainability by an overall revamp of the fourth production line, which was upgraded last year, Al-Ayed elaborated. This was reflected on the efficient utilization of Yanbu Cement’s resources and cost reduction, he added.

Clinker output in Q2 2022 jumped 50% year-on-year (YoY) to 1.5 million tons, bringing the first-half total to 3.2 million tons, up 46 YoY.

The Tadawul-listed cement producer exported 829,000 tons and 400,000 tons of clinker during the second and first quarters of 2022, respectively, most of which was directed to West Africa and some South Asian countries.

Commenting on the average selling prices, Al-Ayed said the company uses a flexible