Hail Cement CEO says Q3 2020 net profit buoyed by better demand, prices

Hail Cement Co.’s solid performance in Q3 2020 was driven by better demand, prices and improved efficiency, which led to higher production, pushing net profit up 200%, CEO Khalid Ahmed told Argaam in a telephone interview.

The company’s clinker stock stood at 3.1 million tons by the end of the third quarter of the year, Ahmed said, expecting a marginal quarterly rise in sales through Q4 2020 and Q1 2021.

Elsewhere, Ahmed said the tripled value-added tax (VAT) had an indirect impact on Hail Cement’s performance, pointing out that the current 5% real estate transaction tax will help improve the sector performance.

The cement producer’s net profit soared to SAR 22.83 million in Q3 2020, from SAR 7.60 million in prior-year period, Argaam reported.