Riyadh - Mubasher: City Cement Company, a major player in the Saudi Arabian construction materials sector, has provided a detailed update regarding the financial implications of recent fuel price adjustments.
Following an initial notification received from energy suppliers earlier this year, the company has quantified the direct impact on its operational expenses, projecting a 2.32% increase in total production costs. This adjustment has already been integrated into the company’s financial reporting for the first quarter (Q1) of 2026.
The disclosure serves as a formal follow-up to the company’s previous announcement made on 5 January 2026. At that time, City Cement informed the market and its shareholders that it had received official notice regarding a revision in the pricing of fuel products essential to its manufacturing processes.
As energy constitutes a significant portion of the overhead in cement production, the company has since conducted a comprehensive internal assessment to determine the exact fiscal burden of these revised rates.
According to the latest figures released by the company, the direct financial impact is estimated to manifest as a 2.32% rise in the cost of production.
City Cement confirmed that this increase is not a future projection but a realized factor that has been fully accounted for within the financial results of Q1-26.
This transparency ensures that investors and stakeholders are informed of the margin pressures currently affecting the industrial sector due to energy price volatility.
In response to these rising costs, City Cement emphasized its commitment to operational excellence and sustainability. The management stated that the company is actively implementing best practices designed to enhance business efficiency and promote responsible growth.
These initiatives are primarily focused on cost reduction strategies and the optimization of production and operational workflows to offset the impact of higher input prices.
A significant factor in mitigating the financial pressure of the fuel price hike has been the company’s participation in the Industrial Sector Competitiveness Program.
City Cement noted that joining this national initiative has played a vital role in reducing the overall financial impact of the price adjustments. The program is designed to assist industrial entities in improving energy consumption efficiency, thereby fostering a more resilient manufacturing environment in the Kingdom.
The company further reiterated its dedication to maintaining strict compliance with all disclosure requirements and regulatory frameworks set forth by the Capital Market Authority (CMA). City Cement has pledged to provide timely updates to the public regarding any further material developments that may influence its business operations or financial standing.
