Raysut Cement Co, the biggest cement producer in the sultanate, has posted a 33 per cent growth in first-quarter profit before tax (PBT).
In a filing with the Muscat Securities Market on Tuesday, the company said net profit rose to RO9.13mn from RO6.84mn in the same period last year.
During the first three months of 2013, the company's sales revenue increased two per cent to RO25.22mn from RO24.64 in the same period last year.
"The increase in profit is attributable to higher sales volume in cement, better price realisation through market optimisation as well as the reduction in costs compared to the previous year. The increase in the market value of investments since the beginning of the year has also had an impact on profit," said Sheikh Ahmed al Ibrahim, in the chairman's report.
Raysut Cement group as a whole sold around 1.02mn tonnes of cement during the first quarter this year as against 996,560 tonnes in the corresponding period of last year, an increase of three per cent. There was no sale of clinker during the three months of the current year against 60,121 tonnes sold in the same period of last year.
Sheikh Ahmed said the company's strategy to expand its market base through supplies to Yemen, East Africa and to other GCC countries has helped.
"However, the supply of cement from UAE is likely to continue until larger developments take shape in UAE and in neighbouring countries beyond Oman. So the pressure on demand and price would continue from supplies out of UAE during the year," he added.
The company said that its UAE subsidiary Pioneer Cement earned a profit of RO1.15mn in the first quarter of 2013 as against RO1.08mn in the corresponding period last year, in spite of the severe competitions in the UAE and Oman markets.
© Muscat Daily 2013
