Apr 26 2012
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Oman Cement mulls expanding capacity
A consultancy agency has been engaged to study the feasibility of further expansion.
The company also said it posted a robust 23.9 per cent profit growth in the first quarter at RO5.14 million, against RO4.15 million for the same period last year.
Growth in revenue
Oman Cement said its revenue for the first quarter also rose to RO13.97 million from RO12.86 million, while cost of sales moved up marginally to RO8.36 million from RO8.12 million during the period.
The company's sales were up by 13.78 per cent at 558,495 tonnes of cement for the first quarter from 490,865 tonnes for the same period last year.
Earnings per share (EPS) moved up to 62 baisas by March-end, from 50 basias for the same period in 2011, the company said in a statement posted on Muscat Securities Market (MSM) website.
"The supply of cement from neighbouring countries in large quantities and at low prices has continued to exert pressure both on volume and the price of the cement sold. We have been able to improve our sales and profit with a balanced approach of marketing efforts, a competitive price structure backed with high quality of our product and adopting effective expenditure control measures," stated Dr Abdulla Abbas Ahmed, chairman of Oman Cement Company .
"Going forward with a value of Oman construction projects worth millions of rials for the next couple of years adding stimulus to cement demand, we believe that Oman Cement Company will continue to maintain its top-line growth momentum," he added.
The company is in an advanced stage of upgrading its pollution control facility for Kiln-I.
"However, under directions from the Ministry of Environment & Climate Affairs in this regard, the company had to shut down production of clinker from first production line on February 15, 2012. Subsequently, after discussions with the officials of the ministry and their understanding of all the actions taken by the company to improve environmental aspects, it was agreed to re-operate the kiln. The kiln recommenced the production on February 22, 2012."
Oman Cement Company is also planning to improve its pollution control equipment of Line 2 to bring down dust emission levels. "Process of identifying a suitable consultant in this regard has been initiated by the company," added the company statement.
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