Raysut Cement nine-month net profit up 8% YoY

Raysut Cement, Oman's biggest cement producer, reported an eight per cent increase in net profit to US$60.21m compared with US$55.71m in the same period of last year.

Revenue was US$183m for the period, just ahead of the US$182m recorded  in the first nine months of 2013.

"While there are positive signs of growth in Oman market, the same is not being translated into cement demand due to sever competitions from the UAE suppliers. The competitions are also experienced in the Yemen and east African markets," the company said.

For the year through to the end of September, the company sold 2.83Mt of cement, up 1.4 per cent YoY. Clinker and cement production totalled 2.46Mt and 2.81Mt, respectively, compared with 2.47Mt of clinker and 2.79Mt of cement produced during first nine months of 2013.

Raysut has embarked on building a distribution terminal in Duqm, increasing its silo capacity in the Salalah plant, as well as building an offshore un-loader and blow pump system in the north to facilitate bulk cement handling. It is also exploring the possibility of expanding beyond Oman's market.

"The work is in progressive stage for some of these projects and the company would reap benefits from these starting from the early part of next year," the company added.