Ruysut Cement, Oman’s largest cement producer, reported a 32 per cent decline is sales revenue for the first quarter of this year, heightened by competition from imports.
Revenues fell to OMR16.3m during the three month period ending March 31, 2010 compared to earnings of OMR23.9m achieved during the corresponding period in the previous year.
Pre-tax profits stood at OMR6.81m for 1Q10, against OMR7.84m earned during the corresponding period of last year, a decline of 13 per cent.
“The decline in profit may be attributable mainly to competition from the external market since the second half of the previous year and demand recession in the export markets creating pressure on sales volume and pricing. Cost reductions are on the positive side reducing the impact, however. In consequence, average profit per tonne has improved," Mohammed bin Alawi Ali Muqaibal, Chairman of the Board of Directors, said in the Directors’ Report.
During the period under review the company produced 547,613t of clinker versus the 507,893t produced during the same period last year, an increase of eight per cent. Cement output increased 10 per cent to 468,360t this quarter, against 426,405t produced during the corresponding period last year.
The outlook for the rest of the year appears mixed, according the Director’s Report. "The construction industry is expected to expand especially in the infrastructure and non-residential sector starting with the second quarter of 2010.