(MENAFN- The Peninsula)
The Peninsula
Doha, Qatar: The Board of Directors of Qatar National Cement Company announced during a meeting held at the company headquarters in Doha, yesterday, that the company has achieved good results despite a noticeable decline in demand for its main products, such as cement, washed sand, and other materials, during 2024.
Despite a decline in sales revenue to QR397m compared to QR460.7m in the previous year, the net profit for 2024 reached QR160m, compared to QR205m in 2023.
This decline is attributed to the company paying QR13m to the Qatar General Electricity and Water Corporation (Kahramaa) in 2024 under a take-or-pay clause, while being exempted from QR15m in 2023, which had contributed to that year's profit. The actual decline in net profit for 2024 is approximately 9%, primarily due to the significant decrease in sales revenue.
Efforts to reduce production costs, rationalize expenses, and improve other income streams have been fruitful. Shareholders' equity stood at QR3.04bn at the end of 2024, compared to QR3.09bn at the end of the previous year, reaffirming the company's strong financial position.
The Board of Directors recommends that the General Assembly approve the distribution of a 27% cash dividend for 2024, equivalent to QR0.27 per share. The General Assembly meeting will be held at 6:00 PM on Monday, February 17, 2025, at the Century Marina Hotel in Lusail.
Engineer Essa Mohammed Ali Kaldari (pictured), CEO, explained that the company achieved these results despite declining demand for its main products, attributing this success to efforts to streamline production costs, improve operational efficiency, and boost other income streams.
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The key highlights of the 2025 plan include:
- Meeting market demands: The company will continue to meet the market's needs for various types of cement, washed sand, and other products. It has started establishing facilities to produce oil well cement, catering to customer demand, diversifying its product portfolio, and increasing market share.
- Reducing production costs: By optimizing energy consumption, reducing other expenses as per the approved budget, and ensuring operational excellence, the company aims to enhance profitability. Deposit income increased by 37% in 2024.
- Marketing and sales improvements: Strengthening marketing activities and improving sales services to attract customers while maintaining product quality and competitive pricing.
- Exploring alternative energy sources: Following technical and economic studies by a consulting firm, the company is preparing to utilize waste and household materials as fuel for its cement kilns in Umm Bab.
- Executing strategic projects: These include utilizing leased land in the industrial area, connecting factories and residential areas in Umm Bab to the public water network, and developing allocated land in Mesaieed Industrial City.
- Diversifying revenue streams: Exploring investment opportunities within and outside Qatar to support the company's activities.
Enhancing health, safety, and environmental conditions: Improving social services for workers at production sites and residential areas in Umm Bab and Muaither.
Adhering to governance principles: Achieving the highest levels of compliance in management responsibilities across all levels.
Fulfilling national responsibilities: Supporting sports and social activities and continuing environmental protection programs at all locations. The company's management extends its deepest gratitude to Amir H H Sheikh Tamim bin Hamad Al Thani for his support.
The sincere thanks are also extended to government authorities for their continuous support of the industrial sector, contributing to sustainable development and the realization of Qatar National Vision 2030.
The company congratulates its valued shareholders on the results achieved in 2024 and reaffirms its commitment to enhancing and developing its activities to ensure further growth and success.
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