Malik Salama – Mubasher: The combined losses of 4 cement companies listed in the UAE capital markets increased by 82% during the first six months of 2022.
According to UAE financial market data for the period ending on June 30, 2022, losses amounted to 95.7 million dirhams, compared to recording losses of 52.5 million dirhams during the same period in 2021.
Fujairah Cement Company topped the list of those companies in terms of losses by 15%, with losses amounting to 29.6 million dirhams at the end of the first half of 2022, compared to losses of 25.7 million dirhams during the same period in 2021.
The company recorded a negative income margin of 3.6% compared to a positive profit margin of 10.4% during the first half of 2021 due to the decrease in sales by a greater percentage than the decrease in direct costs.
Followed by Gulf Cement Company, whose losses increased during the first six months 2022, by 15% to reach 29.2 million dirhams, compared to losses of 25.4 million dirhams during the first six months 2021.
The company recorded losses from investments of 1.01 million dirhams, compared to achieving investment incomes of 7.20 million dirhams during the first half of 2021.
The company’s other revenues fell to 1.46 million dirhams during the first half of 2022, compared to 7.17 million dirhams during the same period in the previous year.
Sharjah Cement Company jumped by 431% to reach 26 million dirhams, during the first half of 2022, compared to losses of 4.9 million dirhams during the same period in the previous year.
The company recorded a negative profit margin of 4.2% compared to a positive profit margin of 3.0% during the first half of 2021 as a result of the increase in the cost of direct costs by a greater rate than the increase in revenues.
Investment income decreased by 13% to reach 5.6 million dirhams, compared to 6.4 million dirhams during the same period last year.
Financing expenses increased by 6% to reach 7.1 million dirhams, compared to 6.7 million dirhams during the first half of 2021.
The National Cement Company, which is the only cement company listed on the Dubai market, recorded losses of 10.9 million dirhams, by the end of the first half of 2022, compared to profits of 3.5 million dirhams achieved during the same period in 2021.
The company’s sales declined by 7% compared to the first half of 2021, and general and administrative expenses increased by 29% to reach 13.8 million dirhams, compared to 10.7 million dirhams during the same period last year.
And recorded losses from the net change in the fair value of debt instruments at fair value through profit or loss of 5.4 million dirhams during the first half of 2022, compared to achieving profits of 8.2 million dirhams during the same period last year.
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