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Oman Cement working through challenging market

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World Cement,

Cement production at Oman Cement Co. (SOAG) rose just over 8% in the first nine months of the year to 1.86 million t, following the installation of a new cement mill at the company’s plant. The rise in cement production was supported a jump in clinker production by almost a fifth.

The company produced 1.82 million t of clinker between January and September 2017, up from 1.52 million t over the same period last year. The jump in production was “possible due to the sustained effort of our employees and adoption of better maintenance practices.”

Sales volumes were also up 9.59% on the previous year. Despite this, pre-tax profits were down slightly at OMR10.6 million, as a fall in cement pricing helped to offset the rise in sales volumes.

“The price of cement has been under considerable pressure during the period due to intense competition,” the company said. According to SOAG, cement producers from neighbouring countries have been “dumping” cement into the Omani market at “unrealistically low prices.”

The company was also hit by changes to the tax code, which saw its post-tax profits fall by OMR2.0 million (20.89%).

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