The National Gypsum Company (Gypsco) announced that it has received official notification from Saudi Aramco regarding adjustments to the prices of fuel products used in its production operations, effective January 1, 2026. This announcement comes amidst ongoing changes in the industrial energy landscape of the Kingdom of Saudi Arabia.
Announcement details and financial impact
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that this adjustment to feedstock and fuel prices will directly impact production costs. The company anticipates that the financial impact of this decision will become clearly visible starting with the financial results for the first quarter of 2026. Gypsum's management confirmed that it is currently studying and accurately calculating the expected financial impact and is committed to announcing the final results to its shareholders and the public as soon as these assessments are completed.
Industrial Sector Competitiveness Program: A Proactive Step
In a related context, and to mitigate the impact of these price fluctuations, the company highlighted its strategic move to join the Industrial Sector Competitiveness Program in 2024. This program is a key government initiative aimed at supporting industrial facilities in the face of rising energy costs. It is expected to effectively reduce the financial impact of price adjustments, in addition to its pivotal role in improving energy efficiency within the company's factories, thereby enhancing its long-term operational sustainability.
Context of energy price reforms in the Kingdom
This measure is not an isolated event, but rather comes within a broader economic context adopted by the Kingdom of Saudi Arabia within Vision 2030. The Kingdom aims, through gradually adjusting the prices of energy and water products, to link them to global benchmark prices, in order to raise the efficiency of government support and direct it to those who deserve it, in addition to encouraging industrial sectors to adopt more resource-efficient technologies.
The past period has witnessed similar announcements from several publicly traded companies in the cement and petrochemical sectors, reflecting a general trend toward restructuring industrial input costs. This trend is driving national companies to seek innovative solutions to reduce other operating costs and increase production efficiency in order to maintain competitive profit margins in local and regional markets.
Future prospects
The year 2026 is expected to be a turning point in the cost structure of “Gypsum Company”, as the company’s ability to benefit from the industrial competitiveness program and the application of energy efficiency standards will play the biggest role in absorbing the price increase coming from Aramco, and maintaining its position in the building materials and gypsum market.
