Published: Aug 11, 2014
Source: Muscat Daily

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Raysut Cement Group H1 net profit gains 6%

Raysut Cement Co, a leading regional producer, posted a group net profit of RO15.58mn for the six-month period ended June 30, 2014, an increase of 5.9 per cent from the corresponding period last year. Group revenue inched down to RO49.49mn from RO49.52mn.

In his report, chairman Sheikh Ahmed al Ibrahim said the group was able to maintain cement and clinker sales volumes at 2013 levels, in spite of increased competition in several markets.

The parent company, out of its Salalah operations, achieved sales revenue of RO35.61mn during the period ended on June 30, 2014, against RO36.33mn posted during the corresponding period of last year. “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.

Raysut Cement group sold 1.98mn tonnes of cement during the period ended June 30, 2014 against 1.97mn tonnes in the corresponding period of last year. The group also sold 17,433 tonnes of clinker during the 2014 period, against 27,900 tonnes in the same period 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.

He said 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 RO14.54mn during the period ended June 30, 2014, compared with RO14.19mn during the corresponding period of the previous year, a gain of 2.5 per cent.

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