(The Group’s Comments) Qatar Cement Net Profit Drops to QR 66.45 Million in Q1 2019

April 17, 2019

Profits: Qatar National Cement’s profits amounted to QR 66.45 in the first quarter of 2019, a drop of 26%, compared to QR 90.26 million for the same period of 2018, while the company’s earnings per share reached QR 1.02 in the first quarter of 2019, versus QR 1.38 in the corresponding period of last year. It should be noted that the profits in the fourth quarter of 2018 amounted to QR 129 million.

The reasons for the decline in net profits can be summarized as follows:

1.      Sales decreased by 11.7% or QR 28.57 million, with sales down to QR 213.07 million versus QR 241.3 million for the same period of 2018.

2.      The company recorded a loss from investment in an associate company amounting to QR3.2 million in this past quarter, while in the same period last year the company made a profit of QR 471,000 from investment in Qatar Saudi Gypsum Company.

3.      During the last quarter, the company recorded financing costs of QR 2.12 million, which are not offset by financing costs for the same period.

Comprehensive Income: During the first quarter of 2019, the company recorded an estimated profit of QR 13.6 million compared to a loss of QR 9.9 million for the corresponding period of 2018.

Assets: declined by 9.0% during Q1 2019 to QR 3,427 million, as well as cash balances, which dropped by QR 403 million as a result of the dividends distribution of QR 326.8 million in 2018 in addition to repaying part of the liabilities that decreased by QR 105 million.