Oman Cement first-half profit rises 23%

Oman Cement first-half profit rises 23%
31 July 2012

Oman Cement has reported a 23.01 per cent in net profit for the first half of 2012. Earnings rose to OMR9.02m (US$23.4m) compared to OMR7.3m in 1H11.

Cement sales advanced 20.22 per cent to 1.36Mt in the six months to June compared to 0.94Mt in the corresponding period of last year. Turnover was up 13.11 per cent to OMR28.065m.

Clinker production increased to 1.05Mt from 0.68Mt during the first half of last year. The company imported 15,099t of clinker to meet a temporary shortfall during the year. Cement production, meanwhile, climbed 17.78 per cent to 1.12Mt from 0.95Mt in 1H11.

Commenting on the rises, Dr Abdulla Abbas Ahmed, chairman of the board of directors said:  “The underlying fundamentals for the Omani cement market remain strong. This has been demonstrated by the positive growth in sales volumes in the first half of this year. The company is positive about the sector demand and it is felt that even facing competition from neighbouring countries, the company is well-positioned to improve its market share."

The company's new clinker line has helped support increasing demand in the Sultanate. Consumption is expected to gain further momentum in the coming quarters thanks to enhanced government spending as well as the implementation of key projects. As such, Mr Abbas said that the company plans to increase grinding capacity in the "near future" and the services of a consultant have been engaged and its report is currently under consideration.

Published under Cement News