Net income – SAR88 million, +4% Y-o-Y, -4% Q-o-Q, +29% versus EFGe Gross profit – SAR96 million, -11% Y-o-Y, +2% Q-o-Q, +15% versus EFGe Net operating profit – SAR77 million, -14% Y-o-Y, -5% Q-o-Q, +14% versus EFGe   Eastern Cement Company reported its preliminary 1Q2016 headline figures. Earnings inched up 4% Y-o-Y, above our estimate, supported by below-EBIT items. The company cited that the growth in earnings was entirely from share of profit from associate versus losses in 1Q2015. Gross profit and EBIT fell 11% and 14%, respectively (beating our estimate by 14%), on i) flattish volumes (-2% Y-o-Y, in line -2%) due to weak demand and likely lower selling prices; ii) higher COGS affected by the hike in energy cost; and iii) increase in SG&A expenses. We forecast a 5% drop in revenue on lower selling prices (-5%) and flattish volumes (revenue figure is not been yet disclosed). The preliminary results figures do not account for revaluation on its Yemeni subsidiary, as Eastern Cement's management is still studying the impact of deterioration in its investments in the Arabian Yemen Cement Company on its financials, given the current political instability in Yemen. Eastern Cement owns c32% in Arabian Yemen Cement Company. (Earnings release, Tarek El-Shawarby)