Oman Cement’s profits swell

Oman Cement’s profits swell
22 November 2023

In the first nine months of 2023, Oman Cement Co (SAOG) (Hauxin Cement Group) earned profit after tax of OMR7.355m (US$19.1m), compared to OMR4.638m in the corresponding period of the previous year, marking growth of 59 per cent YoY. According to the company, it has continued its efforts to overcome the adverse impact of the rise in prices of some major cost elements, and extensive efforts have been made in this direction in the current period, with better cost management and sustained efforts to improve productivity.

Oman Cement has produced a total of 2.203Mt of clinker during the period versus 1.860Mt during the corresponding period of the previous year, up 18.43 per cent YoY. Cement production came in at 2.442Mt, down 4.32 per cent on the 2.552Mt seen in the 9M22. 

Sales of cement over the nine-month period stood at 2.441Mt, a decline of 4.77 per cent YoY. In value terms, Oman Cement achieved sales of OMR50.561m of cement during the period, against OMR49.492m during the corresponding period of the previous year, an increase of OMR1.070m or 2.16 per cent. 

Oman cement market
Oman’s cement market has continued to witness intense price competition and supply chain constraints between major suppliers, including local cement companies and cement manufacturers from neighbouring countries. The company has continued its dynamic pricing policy and adjusted pricing in response to the market. It has also continued to innovate various products during the period, emphasising quality while maintaining the highest standards. Market demand for the rest of 2023 is expected to stabilise.

Expansion, modernisation and upgrades
• Oman Cement’s decision to establish a new cement plant at Duqm with a capacity of 5000tpd of clinker is under consideration.
• The company is upgrading its capacity by debottlenecking and enhancing the existing Line 3 cooler from 4000 to 6000tpd at its Muscat plant, increasing clinker quality and production capacity.
• The company installed a new cement Mill 6 with a packing and truck-loading plant to meet increased demand. The company also decided to install a fly ash storage and handling system to produce fly ash oil well cement and improve dust emission reduction.
• It is also installing a new municipal solid waste (MSW) and refuse derived fuel (RDF) plant to reduce gas consumption towards its initiative on decarbonisation in line with country vision 2040. 

Published under Cement News