Raysut Cement reports negative results for 2017

Raysut Cement reports negative results for 2017
27 February 2018

Oman-based Raysut Cement Company has reported negative sales revenue and net earnings results due to competition from UAE producers and ongoing socio-economic disturbances in Yemen, according to the Times of Oman.

"There has been severe competition across markets, coupled with socio-political disturbances in Yemen. Unabated supply of cement from the UAE due to surplus capacity and price decline has caused a dent in prices and volume of sales in the northern markets of Oman," stated the company in an annual report.

Revenue of the group fell 22 per cent YoY to OMR71.87m (US$186.91m) in the 2017 period, compared to OMR92.59m of the previous year.

"This is because of lower volume of sales, both in local and export markets. A declining market (21 per cent), lower price realisation, lower production, higher costs resulting from higher energy prices, raw material cost, and maintenance costs have impacted the group’s bottom line," according to the report.

Net profit significantly decreased in the period, falling 72 per cent from OMR20.71m to OMR5.81m.

Published under Cement News