Raysut Cement, the Sultanate’s largest cement manufacturer, registered a 21 per cent decline in profit before tax for the six-month period ended June 30, 2010.
Profit before tax decreased to OMR3.65m this year, from OMR17.30m during the corresponding period of last year. Mohammed bin Alawi Ali Muqaibal, Chairman of the Board of Directors, attributed the decline in profit to competition from overseas suppliers a trend that began in the second half of last year.
Also contributing to lower earnings was a slump in demand in export markets, which put pressure on sales volumes and pricing, as well as falling prices of marketable securities at the end of June 2010. However, cost reductions are mitigating the impact, he added.
"The inflow of cement from the UAE and the price competition in the northern market in Oman, as well as the demand recession in the export segment, have impacted the volume of sales and revenue," the Chairman stated in the Directors Report.