Yanbu Cement Company announced in an official statement that it has received notification from Saudi Aramco regarding adjustments to the prices of fuel products used in its operations, effective January 1, 2026. This move comes as part of ongoing changes in the Kingdom's industrial energy landscape, requiring major companies to reassess their costs and future plans.
Expected financial and operational impact
In a statement published on the Saudi Stock Exchange (Tadawul) website, the company explained that this adjustment in feedstock and fuel prices will directly impact production operating costs. This financial impact is expected to begin appearing in the company's financial statements starting with the first quarter of 2026. Currently, Yanbu Cement's financial and technical management teams are studying and calculating the precise financial impact of this increase, and the company affirms its commitment to announcing the final results as soon as the estimates are completed.
Industrial sector competitiveness program as a lifeline
In a related context, the company highlighted a significant proactive step it had taken previously, joining the “Industrial Sector Competitiveness Program” in 2024. This program is expected to play a pivotal role in mitigating the impact of rising energy costs, as it aims to help industrial companies improve their energy efficiency and provide solutions and incentives that can offset price differences resulting from the new regulations, thereby enhancing the company's resilience and competitiveness.
The context of energy reforms and Vision 2030
This news cannot be viewed in isolation from the broader economic context of Saudi Arabia. The energy price adjustments fall under the comprehensive economic reform program stemming from Vision 2030, which aims to improve the efficiency of natural resource use, reduce waste, direct government subsidies to those who truly need them, and incentivize the industrial sector to adopt more sustainable and environmentally friendly technologies. The cement sector is among the largest energy consumers, making it a prime target for efficiency initiatives.
Commitment to sustainability and shareholder protection
Yanbu Cement Company concluded its statement by emphasizing its commitment to implementing global best practices to enhance its operational efficiency and responsible growth. The company aims to maximize the benefits of the Kingdom's competitive infrastructure to achieve its strategic objectives, ensure continued profitability, and protect shareholder rights amidst upcoming economic changes. It will capitalize on the construction boom and major projects underway in the country, which guarantee a sustained demand for cement products.
