(The Group’s Comment) Qatar National Cement Company Net Profit Drops by 50% to QAR 172.16 million
27 January 2020
Profits: Net profits for 2019 declined by 50% to record QAR 172.2 million compared to QAR 347.8 million for 2018. Earnings per share for the year amounted QAR 1.26 compared to QAR 1.53 for 2018. The 4th quarter 2019 net profit reached QAR 42.8 million compared to QAR 129.0 million for the equivalent quarter 2018.
The decline in the net profits could be ascribed to the following reasons:
1. Decline in the revenues by 17% (QAR 145 million). Notwithstanding that the revenues had declined for the year 2018, yet their cost has increased by QAR 15.0 million roughly caused by the increase in depreciation expense of QAR 21.0 million.
2. The Company’s recorded losses from investments in associates of QAR 2.5 million versus achieving profits from this item for the preceding year 2018 by 3.3 million. Most of these losses came from investments in Arabian Quarries.
Comprehensive Income: The company comprehensive income statement reflected valuation profits of QAR 50.4 million versus QAR 17.8 million valuation profits for the preceding year 2018.