OCC first-half net profit down

OCC first-half net profit down
13 July 2015

Oman Cement Co (OCC) net profit declined by just over 40 per cent in the first half of this year to OMR5.44m (US$14.1m) from OMR9.09m in 1H14, the company said in its filing of initial numbers with the Muscat Securities Market.

Revenue declined marginally to OMR25.53m in the first half of this year compared with OMR25.68mn in the corresponding period of 2014. Investment and other income fell sharply by 54.1 per cent to OMR1.8m from OMR3.94m. As a result, Oman Cement 's total revenue fell 7.7 per cent to OMR27.33m.

OCC last month cautioned that the extended kiln closure of its 4000tpd line as part of planned maintenance would have an impact on it second-quarter performance. CEO, Jamal al Hooti, told Muscat Securities Market that the closure was resulting in lower production and sales.

The company's total expenses rose by 8.2 per cent to OMR21.3m in the first six months of 2015 against OMR19.7m in the same period of last year.

The Ministry of Oil and Gas had increased the price of natural gas supplied to industrial companies by 100 per cent, effective 1 January 2015. Oman Cement 's gas price was hiked from US$1.5/mmbtu to US$3/mmbtu. The company expects direct expenditure on this account to go up by an estimated OMR6.63m this year.

Published under Cement News