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Concerns from Najran Cement and AMAK over fuel price increases negatively impacting sales

The Clap

Both the mining company “AMAK” (1322) and the cement company “Najran Cement” (3002) have expressed concerns about the impact of fuel price increases on their cost of sales in Saudi Arabia.

What

They received notifications from Saudi Aramco about changes in fuel product prices used in their production, effective from January 1st of this year.

So What

This is important because “AMAK” stated that the increase in fuel prices will raise its cost of sales by approximately 3%. “Najran Cement” also expects a cost increase of about 13%. They both mentioned that they will work on “minimizing the financial impact” of this adjustment on their profits. They also affirmed their commitment to implementing their plans to reduce costs, improve production and operational efficiency, and explore ways to diversify energy sources in coordination with government authorities.

Now What

The financial impact of the fuel price increases is expected to be reflected in the financial results of both companies starting from the first quarter of the current year.