Element List	Explanation
Introduction	The Southern Province Cement Company is pleased to announce in line with the Kingdom's Vision 2030 to conserve natural resources and focus on sustainability and clean energy projects signing of a solar energy purchase agreement with Tarshid Energy Solutions Company on September 25, 2025. The agreement is for a period of 25 years and will be implemented at Bisha Cement Plant, one of the company's plants.
Date of Announcement of the Award	2025-09-25 Corresponding to 1447-04-03
Contract Subject Matter	Purchase energy from Tarshid Energy Solutions Company
The Entity with Which the Contract was Signed	Tarshid Energy Solutions Company
Date of Signing the Contract	2025-09-25 Corresponding to 1447-04-03
Contract Value	The average annual payments for the contract will be approximately (4) million riyals annually for the duration of the contract in exchange for purchasing energy.
Contract Details	The agreement is based on purchasing energy from Tarshid Energy Solutions at a cost lower than the company's current electricity generation. The Southern Province Cement Company will not require financing to implement the project, as it will not incur any capital or operational expenses, subject to obtaining the necessary approvals from the relevant authorities.
Contract Duration	25 years
Financial Impact and the Relevant Period	Construction work on the project is expected to begin on October 1, 2025.The power generation system is expected to be operational in the third quarter of 2026. According to the company's initial estimates, the impact of the cost reduction will gradually become apparent from the first year of operation. The financial impact will be determined based on the project's energy consumption prices at the time.
Related Parties	none