Raysut Cement group profits rise, Oman
Oman-based cement producer, Raysut Cement reported net profit before tax rose 37.4 per cent to OMR6.84m for the first three months of 2012, from OMR4.98m (US$13m) in the same period last year. Pretax profit alone increased 26 per cent to OMR5.59m from OMR4.45m during the period under review.
Total group revenue stood higher at OMR24.64m for the first quarter from OMR20.24m posted for the same period of 2011.
"In spite of the price competition from the UAE suppliers and the volatility in the export market, the company has achieved the sales revenue of OMR16.68m during the period of three months against OMR14.93m achieved during the corresponding period in the previous year, an increase of 14 per cent," stated RCC chairman Ahmed bin Alawi bin Abdulla Al Ibrahim.
The rise in profit is attributed to higher sales volume and better price realisation in spite of competitions faced by the company, both in the domestic and in the export markets compared with that in the previous year.
The construction sector is expected to be on upswing during the current year and for further next three- to four-year period in view of large expenditure plan.
In spite of growth in construction segment, the cement industry in Oman have been severely impacted from the supplies of UAE exporters at unsustainable prices, and decline in Yemen market due to social unrests. "The situation is undergoing a positive change with the UAE construction industry being set on a motion with additional commitments in expenditure, significant developmental expenditure slated in Saudi Arabia seeking probable import of cement, and then the Yemen market is showing some strong signals for growth. Hopefully, both volume and price realisation would be on the recovery side during 2012."
In the first quarter, Raysut Cement has pursued its non-traditional markets beyond its traditional base and hopes that the coming period would enable it to effectively compete with competition and stay well ahead in all fronts of production, sales and profitability in all the units and markets.
The group as a whole has sold 60,121t of clinker and 996,560t of cement during the quarter ended on 31 March, 2012 against 32,982t and 831,844t respectively in the same period of previous year.
The company alone has sold 615,550t of cement and 50070t of clinker during the period against 569,355t of cement and 32,982t of clinker in the corresponding period in the previous year, registering an increase of about eight per cent on cement and an increase of 52 per cent in sale of clinker.
