Union Cement Co, one of the UAE’s largest producers, yesterday reported annual profit fell by 64 per cent in 2009 compared to the previous year, indicating the continued effect of the downturn in the construction sector.
UCC’s annual profit reached Dh57 million on the back of Dh700 million in revenue compared to the Dh1.1 billion revenue figure recorded in 2008. At the time of going to press, the company had not released its full earnings.
Through the first nine months, UCC had reported a five per cent increase in profits over 2008 to Dh97 million, meaning its annual result could reflect a fourth quarter operating or investment loss.
Analysts attributed the increase in profitability through the first three quarters to the company’s move to multi-fuel kilns which use a combination of coal and natural gas, lessening its dependence on expensive fuel and diesel.
Based in Ras Al Khaimah, UCC’s annual production capacity is estimated at 4.2Mt of cement and 4Mt of clinker. The company is 40 per cent owned by the RAK government and 20 per cent owned by the Abu Dhabi Investment Authority, according to the Abu Dhabi Securities Exchange website.