Riyadh- Mubasher: Yanbu Cement posted SAR 93 million net profits in the third quarter of 2016 which came below the estimates of Al Rajhi Capital Research and the consensus.

The company’s earnings were negatively impacted primarily due to higher than anticipated cost of goods sold and lower than estimated average realized price per ton, according to the research firm.

Gross profit declined 34% year-on-year to SAR 107 million versus the estimates of 26% decline, as a result of higher than expected impact of increased fuel prices.

The Saudi-listed company Q3 revenues fell 24% to SAR 235.5 million

In the first nine months of 2016, the company’s sales volume declined 11% year-on-year. During Q3, the company sold 1.14 million tonnes.

Al Rajhi Capital maintained its overweight rating on Yanbu Cement with a revised target price of SAR 37 per share.

“For the coming quarters, we expect the company to continue offering discounts given the expected additions in capacity in the western region and the company’s high inventory (3.8 million tonnes),” Al Rajhi Capital said.