Oman’s Raysut Cement Company has reported a 6.7% increase in profit before tax for the period ending 30 June 2014. Revenue came in at RO49.5 million, compared to RO49.52 million in the corresponding period in 2013. The group has noted that it has managed to achieve similar revenue to last year despite increasing competition. According to Raysut Cement, as supply outstrips demand in the UAE, large volumes of cement are being imported to Oman, thereby driving up competition in the market.
As a whole, the group sold more than 1.98 million t of cement in 1H14, representing growth of around 1% y/y. Sales of clinker declined slightly from 27 900 t to 17 433 t. The parent company experienced a 3% fall in cement and clinker sales as competition from UAE suppliers hit sales volumes in the northern region. However, greater opportunity for sales growth were to be found in Yemen and Africa during the period. Meanwhile, Pioneer Cement saw cement sales improve by 3% y/y to reach 720 254 t.
The company is carrying out a number of investment projects, such as a new distribution terminal in Duqm, increased silo capacity at the Salalah plant and an offshore wheel loader to facilitate bulk cement handling in the north. In addition, it is looking into expanding its reach beyond Oman.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/africa-middle-east/12082014/raysut-cement-1h14-results-highlights-282/