Oman: Raysut Cement's profit rises on higher demand

Oman’s largest cement producer, Raysut Cement, achieved a 12.6 per cent growth in net profit in 2013 to OMR27.62m (US$71.73m), on the back of higher domestic demand. Revenue rose by 0.5 per cent to OMR93.29m from OMR92.8m a year earlier, the company said in a disclosure to the Muscat Securities Market.

Cost of sales fell to OMR61.72m in 2013 from OMR62.88m during the year before. The preliminary results are unaudited and subject to the approval of the statutory auditors, audit committee and board of directors.

Cement demand in Oman has been showing a robust growth on the back of the government expenditure on infrastructure and tourism. The outlook remains promising as the Oman Development Plan (2011-15) and Oman Vision 2020 are likely to continue fuel government spending. The financial performance of Oman’s domestic producers is also expected to improve as imports from the UAE are diverted to Saudi Arabia to meet cement supply needs there.