Oman Cement 9M12 net profit surges on local demand

Oman Cement 9M12 net profit surges on local demand
25 October 2012

Oman Cement Company’s profit after tax increased 32.5 per cent to OMR12.859m (US$33.4m) in the first nine months of the year against net earnings of OMR9.703m during the same period last year.

Cement sales rose 20.8 per cent to 1.689Mt from 1.98Mt last year. Turnover increased 15.16 per cent to OMR41.762m against OMR36.265m last year.

Clinker production also sharply increased to 1.505Mt this year, from 1.037Mt last year. In addition, the company had to import 54,652t of clinker to bridge a temporary shortfall stemming from the prolonged shutdown of one of its kilns which was being equipped with pollution control equipment. In contrast, clinker imports were high as 291,498t during the corresponding period of last year.

Cement production was 19.6 per cent higher at 1.677Mt this year, from 1.402Mt during the corresponding period of last year. The company also imported 752t of cement to cover a temporary shortfall in supply.

Commenting on the outlook for cement demand, Dr Abjdullah Abbas Ahmed, Chairman of the Board of Directors said in the report detailing the nine-month performance: “The underlying fundamentals for the Omani cement market continue to remain strong. This has been demonstrated by the positive growth in sales volumes in the first nine months of the year. The company is positive about the sector demand and it is felt that while competition from neighbouring countries and locally will still continue to exert pressure on margins, the company is well-positioned to retain and improve its market share in Oman.”

The report further added: “The company’s new clinker production line has provided the much needed support to meet the expected demand in the Sultanate. Additionally, with the enhanced level of government spending along with key project implementation during the remaining period of the existing five-year plan, the company expects further improvement in demand for cement in the Sultanate.”

The company is now looking to install a new 150tph cement mill to increase its grinding capabilities and a tender is currently being floated.

Published under Cement News