Net income – SAR97mn, +9% Y-o-Y, -32% Q-o-Q, +6% vs. EFGe Gross profit – SAR101mn, -7% Y-o-Y, -38% Q-o-Q, -9% vs. EFGe Net operating profit – SAR88mn, -9%Y-o-Y, -41% Q-o-Q, -9% vs. EFGe   Arabian Cement Company has reported its preliminary 3Q16 headline figures, showing Y-o-Y earnings increase of 9%, broadly in line with our estimate (+6%). Net profit was supported by i) lower finance cost (-SAR4.4mn or 77% Y-o-Y); ii) higher other income (+SAR5.9mn Y-o-Y); iii) higher income from associate (+SAR1.4mn); iv) lower zakat (-SAR3mn or 39% Y-o-Y); and v) lower minority interest (-SAR3mn). On a recurring basis, earnings was flat Y-o-Y, while they fell 41% on a Q-o-Q basis due to lower revenue (-31%) on seasonality and margin pressure. Revenue fell 24%, 10% below our forecast, mainly on significant drop in sales volumes by 25% Y-o-Y in 3Q16. Gross profit and EBIT were only down 7% and 9%, respectively, on improved margins by 6% and 7%, respectively, as 3Q15 margin was exceptionally low, likely as the company did not consume high-cost imported clinker during this quarter versus last year. (Earnings release, Tarek El-Shawarby)   Arabian Cement Co. (Saudi): SAR34.70 as of 17 October 2016, Rating: Buy, FV: SAR60.00 per share, MCap: USD925mn, ARCCO AB / 3010.SE