City Cement expects 8% cost increase following Aramco’s fuel price hike

City Cement expects 8% cost increase following Aramco’s fuel price hike

Riyadh – Mubasher: City Cement Company announced that the increase in the prices of fuel products used in cement production announced in January by Saudi Arabian Oil Company (Aramco) will raise its total costs by around 8%.

The direct financial impact is expected to appear starting from the first quarter (Q1) of 2024, according to a bourse filing.

City Cement said its investments in alternative fuel and waste heat recovery system (WHR) had mitigated the impact of inflation in fuel prices.

In 2023, the Tadawul-listed company posted a 28.70% year-on-year (YoY) annual drop in net profit to SAR 82 million from SAR 115.01 million.

City Cement expects 8% cost increase following Aramco’s fuel price hike