May 07, 2013

Muscat: Raysut Cement Company's consolidated profit before tax soared 33 per cent to OMR9.13 million for the first quarter, from OMR6.84 million for the same period last year. The group's revenue also edged up by two per cent to OMR25.22 million from OMR24.64 million during the period.

"In spite of the severe price competition from the UAE suppliers, and the volatility in the export market, the company has achieved the sales revenue out of its Salalah operation for OMR18.17 million for the three-month period against OMR16.68 million achieved for the same period of the previous year, an increase of 9 per cent,"   Ahmed bin Alawi bin Abdulla Al Ibrahim, Chairman of the company, said in a statement.

Increased govt expenditure
Increased government expenditure, low inflation, restructuring of debts, and resurgence in tourism have renewed confidence in the UAE economic environment in non-oil sector. The construction segment, a growth driver in economy, is likely to be on an expansion mode during the year. This has a positive impact in the company both for its operation in UAE through its subsidiary and in its northern market through likely reduction in volume of supplies of cement from UAE.

Severe competition
Pioneer Cement has earned a profit of OMR1.15 million as against OMR1.08 Million in the same period of previous year, in spite of the severe competitions faced by the company in the UAE and Oman markets. 

Raybulk Navigation and Raysea Navigation -- two subsidiaries which provide shipping services -- have earned profits of OMR0.05 million and incurred a loss OMR0.07 million, respectively, during the three-month period.  The supplies of cement from the UAE are likely to continue until larger developments take shape there and in neighbouring countries beyond Oman. "So the pressure on demand and price would continue from supplies out of UAE during the year. However the company's strategy to expand its market base through supplies to Yemen, East Africa and to other GCC countries has helped." 

The group as a whole has produced 790,830 tonnes of clinker and 991,858 tonnes of cement during the period ended March, 2013 against 869,652 tonnes of clinker and 1,007,376 tons of cement in the same period of previous year. The overall production clinker and cement went down by nine per cent and two per cent, respectively.

© Times of Oman 2013