Latest news with #ShoeilAlAyed
Argaam
2 days ago
- Business
- Argaam
Prices pressured in Q2, market outlook still positive: Riyadh Cement
Shoeil Al Ayed, CEO of Riyadh Cement, said prices came under pressure in the second quarter; however, the overall market outlook for the second half of the year remains positive, supported by strong demand fundamentals linked to Vision 2030 projects. He added that, with improving operational efficiency, the company is focused on protecting its profit margins despite the volatile pricing environment. In an exclusive interview with Argaam, Al Ayed said the company maintained a healthy profit margin despite market challenges. Riyadh Cement declared a dividend of SAR 1 per share for H1 2025, with a solid profit margin of 37.2%. He stated that the company managed to maintain its profitability level during H1 2025, despite a decline in net profit, attributing this to various operational factors and cost pressures. Nonetheless, revenues grew year-on-year (YoY), supported by higher sales volumes, particularly from infrastructure projects in Riyadh and the Central Province. This growth came despite competitive pricing pressures and rising fuel and electricity costs. He also pointed to increased transportation and logistics costs as key pressures on financial performance, largely due to external operational factors. The company is actively working to offset these challenges through enhanced efficiency. Demand for cement rose during H1 2025, especially in the Central Province, despite seasonal slowdowns during Ramadan and Hajj. Domestic shipments increased YoY, fueled by large-scale projects, housing developments, and infrastructure linked to Vision 2030. A rebound in private sector manufacturing also contributed to stronger white cement sales. Al Ayed said that cement demand in the Central Province grew by around 20% in H1, while overall demand across the Kingdom rose by nearly 14%. The biggest revenue drivers were major infrastructure projects in Riyadh, alongside housing and other key sectors. He emphasized the company's commitment to meeting the growing local demand. Looking ahead, Al Ayed expects demand to pick up in Q3 as post-summer activity resumes, construction momentum continues, and cost control efforts remain in place — all of which should support profit margins moving forward. Riyadh Cement reported a net profit of SAR 133.2 million in the first half of 2025, a decrease of 1% from SAR 134.5 million in H1 2024. In Q2 2025, net earnings stood at SAR 57.5 million, down 11% YoY, according to Argaam 's data.
Argaam
15-05-2025
- Business
- Argaam
Riyadh Cement CEO: Mega projects drive strong demand surge in Riyadh
Saudi Arabia's cement industry witnesses growing demand driven by the implementation of mega projects in Saudi Arabia, especially in Riyadh, Shoeil Al-Ayed, CEO of Riyadh Cement Co., told Argaam. The presence of large-scale projects in Riyadh has made the city an attractive market for all companies, although Riyadh-based companies remain the most favorably positioned to secure such projects. There has been a noticeable demand uptick over the past four months, which Al-Ayed expects to continue at over 15% in Riyadh until year-end. As for Riyadh Cement's Q1 2025 financial results, Al-Ayed indicated that the company reported higher revenue in the three-month period on increased sales volumes as well as higher average selling prices, as demand increased by 6% for the sector and 15% in Riyadh until year-end. When asked about the company's ability to achieve such positive results despite the fuel price hikes introduced earlier this year, and the measures taken to mitigate their impact, Al-Ayed indicated the company has placed significant focus on improving production efficiency and rationalizing energy consumption. Additionally, the support of the Ministry of Industry and Mineral Resources, through the Industrial Sector Competitiveness Program, along with the company's focus on operational efficiency and the reduction of electricity consumption, significantly contributed to lowering production costs, and thus enabling the company to achieve these strong results. The Saudi cement producer has projects in the pipeline, which will likely be completed before year-end, with their positive impact likely to be reflected in the company's performance starting early next year.
