Qassim Cement Company announced today, Thursday, that it has received official notification from Saudi Arabian Oil Company (Saudi Aramco) regarding adjustments to the prices of fuel products used in the company's operational processes, effective January 1, 2026. This announcement comes within the framework of the ongoing changes witnessed by the energy and industry sector in the Kingdom of Saudi Arabia.
Expected financial impact and timeline
In a statement published on the Saudi Stock Exchange (Tadawul) website, the company explained that this adjustment in feedstock and fuel prices will have a direct financial impact on production costs. This impact is expected to begin appearing in the company's financial results starting from the first quarter of 2026. The company's management confirmed that it is currently studying and accurately calculating the expected financial impact and is committed to announcing the final figures as soon as the calculation process is complete to ensure transparency with shareholders.
The context of energy reforms and Vision 2030
The decision to adjust fuel prices comes within a broader national context related to the energy price reform program adopted by the Kingdom of Saudi Arabia as a central component of Vision 2030. These reforms aim to improve energy efficiency, maximize the economic value of natural resources, and encourage industrial sectors to adopt more sustainable technologies. The cement industry is an energy-intensive sector, making it one of the sectors most affected by these structural adjustments, which is driving companies to seek innovative solutions to reduce operating costs.
Industrial sector competitiveness program as a lifeline
In a proactive move to address these changes, Qassim Cement Company announced its participation in the Industrial Sector Competitiveness Program in 2024. This program is a key government initiative designed to support industrial companies in their transformation journey and mitigate the financial impact of energy price adjustments. Through this program, the company aims to improve energy efficiency in its plants, helping to offset rising input costs and maintain acceptable profit margins.
Commitment to sustainability and protecting shareholders' rights
The company concluded its statement by emphasizing its commitment to implementing global best practices and available procedures to enhance the efficiency of its operations. It stressed its dedication to responsible and sustainable development, as well as its pursuit of maximizing the benefits of the Kingdom's advanced and competitive infrastructure. These strategies, taken together, aim to achieve the company's strategic objectives and safeguard the rights of its shareholders amidst evolving economic challenges, reflecting the company's resilience and ability to adapt to future market changes.
