Oman’s Raysut Cement Co. reported net profit of OMR27.42 million for 2014, a little below the previous year’s total of RO27.52 million. Total revenue reached OMR94.29 million, an increase of 1.1% y/y. Despite falling oil prices, the government has promised to continue spending on infrastructure, which should help to maintain cement demand. Export sales, however, are being impacted by the ongoing political situation in Yemen.
Oman Cement Company recently reported a decline in net profit after tax of 12.8% y/y. Costs for Omani cement producers are likely to increase this year due to the government imposed increase in natural gas prices, effective 1 January 2015.
Raysut Cement and Oman Cement have warned their operational costs will increase next year following the Ministry of Oil and Gas’ decision to raise gas prices.
Raysut Cement has recorded an increase in profits for the third quarter, while Oman Cement, which has recently completed an upgrade project on line 1, reported a decline in profits for the period.