Ras Al Khaimah Cement improves

Ras Al Khaimah Cement Company, fuelled by the boom in the UAE’s construction sector, has posted a sharp increase profit in 2003 profits. The company earned a net profit of Dh30.02 million for 2003, compared to Dh3.69 million in 2002. Total revenues jumped from Dh40.01 million to a solid Dh65.00 million last year. Earnings per share increased sharply to Dh0.75 from Dh0.09.

"The results of Ras Al Khaimah Cement Company are impressive but it was not wholly unexpected because most cement companies saw a peak in demand in the last year," an Abu Dhabi-based broker said in remarks published in the Gulf News. "Cement companies benefited mainly from the construction boom in the UAE especially in Dubai where huge construction projects are coming up. Obviously they had better margins too," he said.

Earlier this month, another Ras Al Khaimah-based company, the Gulf Cement Company declared net revenues of Dh247.47 million last year, a 31 per cent increase over the previous year. Higher sales had contributed to an all-round growth in the company. "We forecast another profitable year for cement companies in the UAE this year as the construction boom is expected to continue until 2006, going by the projects announced," he added.