Two cement producers show good Q3 results

ABU DHABI—The construction boom the country is experiencing has continued expanding the balance sheets of the already strong cement sector as during the third quarter of the year two more cement company Umm-Al-Qawain Cement Industries Company and Sharjah Cement and Industry Development Company have reported earning rise of 100 per cent.

By Haseeb Haider

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Published: Tue 1 Nov 2005, 9:50 AM

Last updated: Thu 2 Apr 2015, 5:13 PM

Umm-Al-Qawain Cement Industries Company has netted a net profit of Dh134.533 million during the July-Sept quarter against Dh68.382 million.

According to the audit report the sales of cement showed a substantial rise due to the continued ongoing construction boom in the country. The sales jumped to Dh116.427 million from Dh85.162 million during the comparable period of previous year.

There was a significant increase in the cost of sales also which grew to Dh86.61 million from previous year's third quarter figure of Dh56.570 million. The cement company incurred Dh2.47 million as administrative expenses up against Dh1.866 million.

The company gained from Dh46.075 million its investment in shares, slightly better than the gains made during the third quarter of previous period when it bagged Dh2.37 million. There were gains of Dh64.908 million after the difference resulting from revaluation of investment in shares held for trading. During the previous year same quarter, the company reported earning Dh30.697 million.

According to balance sheet, the current assets of the company included investments in shares held for trading Dh252.963 million during the period under review against Dh123.709 million during the comparable period. The 100 per cent jump in the net profits has also upped the earning per share which went up to Dh0.547 from 0.27.The construction boom in the country is continuing and bringing good business for the local cement industry as Sharjah Cement and Industry Development Company (SCIDC) Dh68.828 million, a marathon jump of 100 per cent from a profit of Dh33.732 million.

The sales have also gone up to Dh146.8 million during the third quarter against Dh96.797 reported during the same period last year. The cost of sales has also increased to Dh84.852 million from Dh61.189 million.

The general and administration expenses also increased by cent per cent to Dh4.8 million from Dh2.4 million while the selling and distribution cost rose to Dh0.752 million from Dh0.636 million.

The company reported windfall gains from its investments, which expanded by 300 per cent to Dh14.33 million against a humble earning of Dh5.260 million.

The earning per share doubled to Dh0.188 during the July-September quarter comparing with Dh0.092.

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