Saudi cement makers Q2 profits hit by export ban

* Four cement companies post lower net profit

* Government ban on cement exports behind drop

By Asma Alsharif

RIYADH, July 13 (Reuters) - Three Saudi Cement companies posted declines in second-quarter earnings on Monday due to a government ban on exports that blocked income from markets in other parts of the Middle East.

A forth company, Southern Province Cement Co 3050.SE, the largest in the sector one by market value, also reported a 7.8 percent decline in second-quarter earnings on Sunday.

Talaat Hafez, a member of the Saudi Economic Association, said that the losses to the cement companies was due to the ban on exports as foreign sales were a big factor in their profitability.

The government imposed the ban in June 2008 and partially lifted it in May.

"Allowing them to export will have a bolstering effect in their revenues ... I don't think these losses will continue," Hafez said.

Tabuk Cement 3090.SE logged the largest decline, posting a 45 percent drop in quarterly net profit to 37.8 million riyals.

Yamamah Saudi Cement Co 3020.SE saw net profit fall by 27 percent to 165.3 million and Qassim Cement Co 3040.SE posted a 2.4 percent net profit fall to 148.2 million riyals in the three months to June 30.

Domestic cement prices soared last year when Saudi Arabia, where multi-billion dollar infrastructure projects are under way, faced a cement shortage in the local market as companies exported large quantities abroad in search of higher profits.

However, the ban on exporting cement compounded by the launch of additional production facilities in the sector saturated the local market and caused cement prices to fall.

In May, the government allowed cement manufacturers to export part of their surplus production provided they sell their product at the local market for 200 riyals a tonne.

The stock of Qassim Cement fell 4 percent, Tabuk slipped 1.5 percent and Yamamah eased 2.4 percent, all underperforming the main index .TASI which ended down 0.15 percent. (Editing by Karen Foster) ($1=3.750 Saudi Arabian riyal)