Al-Madina Cement Company announced in an official statement last Thursday that it had received official notification from Saudi Aramco regarding adjustments to the prices of fuel products used in its operational processes and industrial activities. The company clarified that the new prices will be effective from January 1, 2026, representing a significant shift in the company's production cost structure.
Financial impact and timeline
In a statement published on the Saudi Stock Exchange (Tadawul) website, the company confirmed that this change in energy pricing will directly impact production costs, with the financial effect beginning to appear in the financial statements starting with the first quarter of 2026. The company's finance department is currently studying and accurately calculating the expected financial impact and is committed to announcing the results as soon as the final estimates are completed to ensure transparency with shareholders.
Context of economic reforms and Vision 2030
This measure comes within the context of the structural economic transformations underway in Saudi Arabia as part of Vision 2030, which aims to improve energy efficiency, redirect government subsidies to those who truly need them, and enhance the sustainability of natural resources. The cement sector is one of the most energy-intensive industrial sectors, making fuel price adjustments a significant factor influencing profit margins and prompting companies to adopt more efficient operational strategies.
Industrial Sector Competitiveness Program: A Lifeline
In a proactive move to address these changes, Al Madinah Cement Company announced its participation in the Industrial Sector Competitiveness Program in 2024. This program is a cornerstone for enabling industrial companies to transition to more efficient technologies. It provides solutions and incentives that help mitigate the financial impact of rising energy costs, improve energy efficiency, and reduce carbon emissions, thereby strengthening the company's competitive position both locally and regionally.
Commitment to sustainability and protecting shareholders' rights
The company concluded its statement by affirming its commitment to implementing global best practices and available procedures to enhance the efficiency of its operations and foster responsible and sustainable growth. It emphasized its dedication to maximizing the benefits of the Kingdom's competitive infrastructure to achieve its strategic objectives, thereby safeguarding shareholder rights and preserving the company's assets amidst future economic changes.
