Raysut sales ease in first nine months, Oman

Raysut sales ease in first nine months, Oman
12 November 2013

Raysut Cement, the leading cement producer in Oman, reported a rise in pretax profit for the first nine months of 2013, but sales eased due in part to competition from neighbouring UAE.

During the Jan-September 2013 period the company reported a 12.6 per cent YoY rise in net profit before tax of OMR21.52m (US$55.9m). Revenue was down slightly to OMR70.18m compared to OMR70.35m in the same period of the year. The company said that competition from the UAE is likely to continue, putting pressure on sales and prices in the Omani market during the year.

"The company's strategy to expand its market base through supplies to Yemen, East Africa and to other countries has helped by way of an increase in exports, particularly in the Yemen market. It is expected that the Yemen market as well as certain markets in East Africa would provide a larger scope going forward, with economic indicators in those countries having improved," stated Ahmed bin Alawi bin Abdulla Al Ibrahim, chairman of the RCC.

During the nine month period the company produced 2.47Mt of clinker and 2.79Mt of cement, down six and 1.4 per cent, respectively compared to the same period of the previous year. Its Pioneer Cement works in the UAE required a shut down for plant maintenance which impacted clinker and production there.

Published under Cement News