| Element List | Explanation |
|---|---|
| Introduction | Further to the Company's announcement published on the Tadawul website dated 05-01-2026G corresponding to 16-07-1447H regarding receipt of a notice concerning adjustment in the prices of fuel used in the Company's operations, the Company would like to clarify the financial impact on the cost of production |
| Date of Posting the Previous Announcement of Development on Saudi Exchange’s Website | 2026-01-05 Corresponding to 1447-07-16 |
| Hyperlink to the Previous Announcement | Click Here |
| Change on the Development | The Company would like to inform its valued shareholders that the Company has signed an agreement with the Industrial Competitiveness Program. The Program is intended to enhance operational efficiency, reduce production costs and improve the sustainability of industrial operations. The supported initiatives are expected to mitigate the impact of the increase in fuel prices on the Company's production costs. As a result, the estimated increase in production costs is expected to decline from 11% to 8%. The Company further confirms that it continues to implement its operational improvement and cost optimization initiatives to partially contain the impact of higher fuel costs in line with the objectives of the program. The financial impact is expected to be reflected in the Company's financial results of second quarter 2026. |
| Financial Impact on the change | The financial impact of the program is expected to reduce the increase in the Company's production costs by approximately 3% and this positive impact is expected to be reflected in the Company's financial results for the second quarter of 2026. |
Addendum announcement from Najran Cement Company regarding receipt of a notice to modify the prices of fuel products used in production
AI Summary
- Najran Cement Company signed an agreement with the Industrial Competitiveness Program to mitigate the impact of rising fuel prices through enhanced operational efficiency and cost optimization.
- The agreement is expected to reduce the estimated increase in production costs from 11% down to 8%, representing a 3% reduction in the impact of fuel price adjustments.
- The positive financial impact of these initiatives is expected to be reflected in the company's financial results starting from the second quarter of 2026.
