RAK Cement profit drops 63 per cent on fuel cost

RAK Cement profit drops 63 per cent on fuel cost
Published: 14 April 2008

Ras Al Khaimah Cement Co first-quarter net profit fell 63 per cent on higher fuel cost and a 21-day annual shutdown.
 
With gas scarce, cement makers in the UAE are turning to imported coal to fire their furnaces to cope with surging demand for cement as the government of the world’s sixth-largest oil exporter invests petrodollars in infrastructure projects.
 
Net income for the three months to March 31 was AED10.2m (US$2.78m), compared with AED27.6m in the year-earlier period, it said in a statement on the bourse website on Sunday.
 
"The cost of natural gas substitutes...kept increasing during the quarter which resulted in the reduction of net profit," it said in the statement.