Oman: Raysut Cement first-half net profit ahead

Oman’s Raysut Cement reported a 5.9 per cent rise in net profit in the six months to the end of June 2014 while cement volumes held firm despite heightened competition.

The company reported a net profit of OMR15.58m in the first-half of 2014, an increase of 5.9 per cent from the corresponding period last year. Group revenue inched down to OMR49.49m from OMR49.52m.

Company chairman Sheikh Ahmed al Ibrahim said the group was able to maintain cement sales volumes at 2013 levels in spite of increased competition in several markets.

Raysut Cement group sold 1.98Mt of cement over the six month period against 1.97Mt in 1H13. Clinker sales, however, fell to 17,433t against 27,900t in the comparative period of last year.

“Severe competition from UAE suppliers impacted sales in the northern region while the company made up for this shortfall in the southern market and by increasing exports. Yemen and the African market provided opportunities for larger volumes during the period' Ibrahim said in his report.

Its Salalah operations in Oman achieved sales revenue of OMR35.61m against OMR36.33m in 1H13. “In spite of competition in the northern markets and volatility in export markets the parent company could largely cover the revenue of the previous period with a smaller decline of two per cent' Ibrahim said.

He added that Raysut's UAE subsidiary Pioneer Cement also faced severe competition in the UAE market as a result of a surge in supply relative to demand. “Consequently Pioneer explored supplies in the north of Oman to keep its higher volume sales.”

Pioneer generated revenues of OMR14.54m during the period ended June 30 2014 compared with OMR14.19m during the corresponding period of the previous year a gain of 2.5 per cent.