Oman: Raysut Cement reports 24% drop in 2015 net profit

Raysut Cement reported a 23.6 per cent drop in 2015 net profit to OMR20.95m (US$54.4m) from OMR27.43m a year earlier. Total revenues edged 0.4 per cent higher last year to OMR94.68m.

Gulf Baader Capital Markets (GBCM) said Raysut Cement''s revenue came above its estimates of OMR91.74m. The brokerage company said that despite the drop in Raysut Cement''s exports to Yemen – which accounts for almost 15 per cent of its total sales – the company managed to report good volumes, sales and earnings during 2015. “We believe the company has managed to explore new markets and was able to mitigate the sales impact from the Yemen market,” it added.

GBCM said Raysut Cement's 2015 net profit came in line with its estimates of OMR21.58m. “The net profit, however, declined by 23.6 per cent owing to the increase in feedstock prices. Though we believe the company will be able to deliver better sales and earnings in upcoming quarters, concerns remains on the prolonged trend of lower oil prices in turn weighing on the construction sector, resulting in delay in execution of few projects or cancellation of non-priority projects, which in turn may result in higher inventory or lower utilisation,” the Oman's largest brokerage firm said. (Source: Muscat Daily)