Latest news with #SaudiCement
Arab News
7 hours ago
- Business
- Arab News
Giga-projects power 6.4% jump in Saudi Arabia's Q1 cement sales to 13.4m tonnes
RIYADH: Cement sales in Saudi Arabia climbed 6.4 percent year on year in the first quarter of 2025 to 13.4 million tonnes, driven by a construction surge tied to Vision 2030 megaprojects. According to data from Al Yamama Cement covering the Kingdom's 17 producers, local sales accounted for nearly 13 million tonnes, while exports edged up to 408,000 tonnes. Al Yamama Cement led the domestic market with 1.68 million tonnes, followed by Saudi Cement at 1.33 million tonnes and Qassim Cement with 1.25 million tonnes. Saudi Arabia is powering through the largest construction surge in its history, a pillar of the Vision 2030 diversification plan. A Bloomberg report this month valued the live roster of real estate and infrastructure schemes at roughly $1.3 trillion, ranging from Riyadh's driverless metro grid and entertainment hubs like Qiddiya to the brand-new cities of NEOM on the Red Sea coast and New Murabba in the capital's northwest. Those giga-projects, along with heritage revamps such as Diriyah Gate and the Red Sea's string of luxury resorts, have now moved well beyond site grading and piling. Gulf Construction, a trade journal for the building and construction industries, noted in May that major project packages are entering the concrete-intensive vertical-build phase, where tower cores, bridge piers, and precast facades consume significantly more cement and clinker than earlier earthworks. In short, the Kingdom's transition from drawing board to steel-and-concrete reality is fueling an insatiable appetite for building materials — and cement producers are gearing up their kilns to meet it. Momentum kept building after March. Domestic sales jumped 42.9 percent year on year to 4.18 million tonnes in April, while exports rose 26.9 percent to 703,000 tonnes, according to Al Jazira Capital's latest dispatch survey. Contractors are pouring concrete early, keen to stay ahead of the summer heat and tighten project timelines. Profits do not rise equally Higher volumes did not translate into across-the-board gains. International Cement Review's CemNet bulletin said in June that sector-wide net profit fell 16 percent in the first quarter to about SR648 million ($173 million) despite stronger turnover. Yamama Cement posted about SR142 million in earnings — up 23 percent — while Saudi Cement slipped nearly 5 percent to SR108 million. Qassim Cement improved 27 percent to roughly SR94 million, but Al Jouf Cement stayed in the red at around SR15 million. Producers faced an added challenge from Saudi Aramco's fuel price revision, effective Jan. 1, which several companies warned would raise kiln fuel costs by around 10 percent. Inventory cushions remain thick. Al Yamama figures show Yanbu holding 18.9 million tonnes of clinker at end-March, with Southern Province close behind on 18.1 million tonnes. Across the sector, stockpiles cover roughly nine months of normal domestic demand, allowing firms to throttle kilns if margins tighten. Modern kilns slash fuel use According to Global Cement's April report, engineering firm Sinoma has finished erecting a new preheater tower as part of Yamama Cement's relocation and upgrade project south of Riyadh. The upgrade increases the former 10,000-tonne-per-day line to 12,500 tonnes, with Sinoma noting it had to dismantle, relocate, and integrate large equipment while installing the latest kiln technology. Completion of the tower clears the way for commissioning and final handover of the higher-capacity, fuel-efficient plant. The efficiency drive extends to the Red Sea coast, where Yanbu Cement's 34 megawatts waste-heat-recovery system already supplies about a quarter of the plant's electricity. The upgrades are crucial because older kiln designs waste a great deal of fuel. According to the European Cement Association, long-dry kilns consume about one-third more energy than the latest preheater–pre-calciner models, while old wet kilns can burn up to 85 percent more. By contrast, modern PH-PC lines require only about 3.3 gigajoules of heat to produce one tonne of clinker — roughly the energy contained in 30 litres of petrol. Transitioning from long-dry or wet kilns to PH-PC technology significantly reduces fuel consumption, lowers production costs, and cuts carbon emissions — all critical advantages as energy prices continue to rise. With Saudi Aramco's January fuel-tariff hike expected to raise kiln-energy bills by around 10 percent, plants that already sip less fuel will feel the pinch far less — and that cost edge is flowing straight into sharper export offers, reinforcing the Kingdom's competitive position in nearby markets.
Zawya
05-02-2025
- Business
- Zawya
Saudi Cement's board recommends $61.2mln dividends for H2-24
Riyadh: Saudi Cement Company announced the board's proposal to pay cash dividends worth SAR 229.50 million for the second half (H2) of 2024. The Tadawul-listed firm will disburse a dividend after Zakat valued at SAR 1.50 per share for 153 million eligible shares, according to a bourse filing. Meanwhile, the distribution date for the dividends, which represent 15% of the capital, will be announced at a later time. On 26 June 2024, Saudi Cement distributed SAR 191.25 million as cash dividends for H1-24.
