Oman: OCC net profit impacted by gas price hike

Oman Cement Co (OCC) reported a 38.7 per cent fall in net profit for the nine-month period ended 30 September 2015, mainly due to the increase in gas prices from the beginning of this year.

During the period net profit dropped to OMR6.99mnfrom RO11.41mn a year earlier. The decrease in profit is mainly due to higher energy costs incurred by the company as a result of the doubling of gas prices.

“The decline in market value of the company's investments also had an adverse impact on performance. In addition to that, the stoppage of the kiln for a period longer than planned also resulted in the decline in profit,” Oman Cement said in its chairman's report released on Tuesday.

“We have, however, continued with our efforts to minimise the impact by better cost management wherever possible,” it added.

Sales for the stood at OMR37.7m versus OMR37.39m a year earlier – representing an increase of just 0.8 per cent. Sales volumes slipped to 1.49Mt from 1.5Mt a year earlier.

OCC said the project for construction of an additional 150tph cement mill is in progress and trial production is expected to commence by the end of the fourth quarter of 2015.

Oman Cement has also awarded a US$11.3mn contract for upgradation of pollution control equipment at its line two to FLSmidth.