Oman Cement annual profit up 10% as production rises

Oman Cement has announced that its profits rose by 10 per cent in 2016, to OMR12.87m (US$33.4m).

In an earnings statement to the Muscat Securities Market, Oman Cement said that sales revenues rose by 8.5 per cent, but better control of costs produced a greater rise in profitability.

The company sold 2.3Mt of cement in 2016, a 10.7 per cent increase on the previous year, which given the slower pace of revenue growth implies lower prices.

Profits were also affected by the longer than planned shutdown of one of Oman Cement’s kilns. The kiln shutdown contributed to the firm’s import of 0.20Mt of clinker, although this was less than the 0.25Mt it imported in 2015.

During 2016, Oman brought a fifth cement mill online, which has helped the company to increase the amount of cement produced.