Raysut Cement, Oman’s largest cement producer, reported a 64.1 per cent YoY growth in net profit for 2012 and revenues also increase fuelled by increasing demand.
Net profit for the 12 months to the end of December 2012 reached OMR24.5m (US$63.6m) against OMR14.95m reported in 2011 as RCC booked an investment gain of OMR1.36m. Revenues also rose 10.7 per cent to OMR92.8m from OMR83.81m in the same period of last year.
Oman’s cement sector, which was earlier facing problems because of the dampening UAE cement sector, registered positive growth in 2012 thanks to a revival in the local industry along with the recovery in the UAE cement sector. Domestic cement demand increased by 6.9 per cent YoY in 2012 to 6.2Mt and this is forecast to rise to around 6.8Mt in 2013 (+9.7 per cent).
Demand is expected to rise mainly on the back of a rise in government outlays on infrastructure spending. It has announced plans to invest OMR314.9m (US$817.9m) in road infrastructure projects during 2013, including:
• OMR60m towards the Sur-Bidbid dual carriageway (total cost OMR250m)
• OMR10m towards the Mahdha-Al Rawda dual carriageway (total estimated cost OMR40m)
• full funding of the OMR62.5m Al Batinah Expressway
In addition, the Omani government has announced 681 infrastructure development projects, worth a total of OMR1.5bn (US$3.9bn), for the year ahead.