Net income – SAR15mn, -20% Y-o-Y, -34% Q-o-Q, +31% vs. EFGe Gross profit – SAR24mn, -20% Y-o-Y, -21% Q-o-Q, +10% vs. EFGe Net operating profit – SAR18mn, -18% Y-o-Y, -21% Q-o-Q, +28% vs. EFGe   Al Jouf Cement Company reported its preliminary 3Q16 results, with earnings dropping 20% to SAR15mn, 31% above our estimate on better-than-expected margins. The company cited that the Y-o-Y decrease in earnings was due to lower selling prices and higher cost of sales on the back of higher energy prices, and despite an increase in sales volume and lower SG&A expenses. Revenue was down 9%, driven entirely by the significant contraction in selling prices to SAR152 per tonne (-28% Y-o-Y), offsetting the 25% increase in sales volumes. The growth in sales volume was driven by Al Jouf’s three-year strategic contract (worth SAR500mn), with Al-Mohileb and Sons Holding Company to supply cement to its projects, which started in 3Q14 and should remain until 1Q17. Gross profit and EBIT were down 20% and 18%,repectively Y-o-Y, on shrinking margins by 5 pp and 3 pp, respectively. (Earnings release, Tarek El-Shawarby)   Al Jouf Cement: SAR6.54 as of 18 October 2016, Rating: Neutral, FV: SAR8.50 per share, MCap: USD227mn, JOUF AB / 3091.SE