Qassim Cement announced its preliminary 4Q11 results on 14 January 2012. All profit lines grew 23-29 per cent Y-o-Y driven by higher revenue combined with lower costs, and came in 10-14 per cent above our estimate. 

The company attributed the Y-o-Y rise in profitability to 1) Increased sales volume, 2) Higher sales value and 2) Improved operating performance of its subsidiary companies.

Higher revenues (due to higher volumes and stable prices) coupled with Y-o-Y decline in costs led to double digit growth in all of Qassim’s profit lines.

Qassim Cement sales volumes increased by 2 per cent in 4Q11 versus a 15.6 per cent increase by the sector as a whole.

QCC has been reported in the local press as investigating the possibility of opening a new line of production. On 9 January 2011 the company announced that they have successfully performed a proposal study with respect to the new production line, but received a reply from Aramco that it would not supply the fuel.