Shuail Al-Ayed, CEO of Riyadh Cement Firm
He stated Shuail Al-AyedCEO of the corporate Riyadh CementProfitability in the course of the third quarter was affected by circumstantial components, most notably the seasonality of the sector, value pressures, and the continued impression of gas prices on margins.
Al-Ayed added in an interview with: numbersThe broader image over the nine-month interval is extra important, as the corporate is witnessing robust development in demand, particularly within the Riyadh area, pushed by main initiatives and housing, the place demand has grown because the starting of the yr in Riyadh by greater than 18% on an annual foundation.
He defined that the corporate’s outlook is optimistic for medium-term profitability, whereas persevering with to enhance operational effectivity and gross sales combine to seize this development.
He added that the demand base is clearly increasing within the Saudi market, particularly in Riyadh, which helps the gradual enchancment of revenues with higher value stability and the corporate’s industrial give attention to initiatives with higher margins.
He acknowledged that the corporate’s inventory of cement and clinker on the finish of the third quarter amounted to about 1.1 million tons, which is among the lowest ranges within the Kingdom, as a result of most of what’s produced is bought to massive initiatives within the Riyadh area.
Al-Ayed defined that probably the most outstanding components that contributed to growing pressures on the efficiency of the cement sector within the quarterly interval are the price of gas, the depth of competitors, and value fluctuations, indicating that these components are transient and don’t change the fact of the multi-year building growth cycle that the Kingdom is witnessing.
He added that the corporate is addressing these pressures by way of value self-discipline, directing most of its gross sales to initiatives, whereas growing operational effectivity.
He acknowledged that the corporate’s inventory of cement and clinker on the finish of the third quarter amounted to about 1.1 million tons, which is among the lowest ranges within the Kingdom, as a result of most of what’s produced is bought to massive initiatives within the Riyadh area.
Al-Ayed defined that probably the most outstanding components that contributed to growing pressures on the efficiency of the cement sector within the quarterly interval are the price of gas, the depth of competitors, and value fluctuations, declaring that the corporate distinguishes between what’s transient and what’s structural, saying: These components don’t change the essential indisputable fact that the Kingdom is witnessing a multi-year building growth cycle.
He added that the corporate’s geographical location close to Riyadh initiatives offers it a logistical benefit, as the corporate addresses these pressures by way of value self-discipline, directing most of its gross sales to initiatives, whereas growing operational effectivity.
Al-Ayed anticipated a seasonal enchancment within the fourth quarter with higher stability in portions and costs, including that the symptoms are constructive on the nine-month horizon and past, as Riyadh leads demand development pushed by main initiatives and housing.
He defined that about 65% of the corporate’s gross sales go to main initiatives, stressing that the corporate is getting into the subsequent stage with accountable optimism, primarily based on higher effectivity in price management, higher industrial self-discipline, and a gross sales combine that favors contracts with greater margins.
He added that what distinguishes Riyadh Cement is the range of its merchandise, because it is among the main gamers within the white cement market, which helps the corporate in some durations to confront any decline in black cement gross sales.
In keeping with knowledge numbersThe corporate’s earnings decreased to 147.9 million riyals by the tip of the primary 9 months of 2025, in comparison with earnings of 229.1 million riyals achieved throughout the identical interval in 2024. Third quarter 14.8 million riyals.
