RAK Cement reports loss, UAE

RAK Cement reports loss, UAE
Published: 03 August 2010

Ras Al Khaimah Cement Company posted a net deficit for the last three months of AED4.2 million – a significant reversal from the AED21.7 million profit for the same period last year.

Sales declined more than 10% from AED65.7 million to AED59 million and the cost of sales swelled by more than half from AED41 million to AED62.1 million.

Half-year results – the first two quarters combined - saw heavier losses, reversing a AED51.1 million net profit into a AED1.266 million net loss, with sales for the six months declining by 20.9% to AED129.2 million. Total assets decreased by 1.7 % compared with 30 June 2009. Shareholders’ equity decreased from AED 798.5 million to AED767.4 million.

The company’s management has cited the restriction on the natural gas supply – a problem faced this year by Oman-based Construction Materials Industries & Contracting – as a key hindrance to production, along with the falling demand for cement, together with the lower prices per tonne.