Najran Cement says fuel price adjustment to increase cost of sales by 13%

Logo of Najran Cement Co.

Najran Cement Co. stated that the direct financial impact of fuel price adjustment will likely lead to an increase of nearly 13% in the cost of sales, according to a Tadawul statement.

The impact is expected to appear starting from the first quarter of 2024.

The cement producer is currently operating its waste heat recovery project (WHR) to generate electricity, which will partially reduce the financial impact.

The company stressed that it would work during the coming period to explore ways to reduce the financial impact of this adjustment on profit. In addition, it will continue to implement its plans to reduce costs and improve production and operating efficiency.

Further, the company will work with government agencies to explore ways to diversify energy sources.