30 April 2012
Muscat: Raysut Cement group's net profit before tax soared 37.4 per cent to RO6.84 million for the first three months of 2012, from RO4.98 million for the same period of last year. However, profit before tax of Raysut Cement Company (RCC) alone soared 26 per cent to RO5.59 million, from RO4.45 million during the period under review.
Oman's biggest cement producer said its total group revenue stood higher at RO24.64 million for the first quarter from RO20.24 million posted for the same period of 2011.
"In spite of the price competition from the UAE suppliers and the volatility in the export market, the company has achieved the sales revenue of RO16.68 million during the period of three months against RO14.93 million achieved during the corresponding period in the previous year, an increase of 14 per cent," stated RCC chairman Ahmed bin Alawi bin Abdulla Al Ibrahim.
The rise in profit is attributed to higher sales volume and better price realisation in spite of competitions faced by the company, both in the domestic and in the export markets compared with that in the previous year. However, the fall in the market value of investment has some impact in the net profit.
The construction segment in Oman is expected to be on upswing during the current year and for further next three- to four-year period in view of large expenditure plan.
In spite of growth in construction segment, the cement industry in Oman have been severely impacted from the supplies of UAE exporters at unsustainable prices, and decline in Yemen market due to social unrests. "The situation is undergoing a positive change with the UAE construction industry being set on a motion with additional commitments in expenditure, significant developmental expenditure slated in Saudi Arabia seeking probable import of cement, and then the Yemen market is showing some strong signals for growth. Hopefully, both volume and price realisation would be on the recovery side during 2012."
In the first quarter, Raysut Cement has done well in pursuing its non-traditional markets beyond its traditional base and hopes that the coming period would enable it to effectively compete with the onslaught of competitions and stay well ahead in all fronts of production, sales and profitability in all the units and markets.
During the period, the sales revenue earned by Pioneer Cement stood at RO7.96 million compared with RO5.31 million achieved in the same period of the previous year. Pioneer Cement has earned a profit of RO1.08 million in spite of the severe competitions faced by the company in the UAE market.
Raysea Navigation and Raybulk Corporation, two of the subsidiaries that provide with shipping services, have earned profit of RO0.066 million and RO0.106 million during the period of three months.
The group as a whole has sold 60,121 tonnes of clinker and 996,560 tonnes of cement during the quarter ended on March 31, 2012 against 32,982 tonnes and 831,844 tonnes respectively in the same period of previous year.
The company alone has sold 615,550 tonnes of cement and 50070 tonnes of clinker during the period against 569,355 tonnes of cement and 32,982 of clinker in the corresponding period in the previous year, registering an increase of about eight per cent on cement and an increase of 52 per cent in sale of clinker.
Muscat: Raysut Cement group's net profit before tax soared 37.4 per cent to RO6.84 million for the first three months of 2012, from RO4.98 million for the same period of last year. However, profit before tax of Raysut Cement Company (RCC) alone soared 26 per cent to RO5.59 million, from RO4.45 million during the period under review.
Oman's biggest cement producer said its total group revenue stood higher at RO24.64 million for the first quarter from RO20.24 million posted for the same period of 2011.
"In spite of the price competition from the UAE suppliers and the volatility in the export market, the company has achieved the sales revenue of RO16.68 million during the period of three months against RO14.93 million achieved during the corresponding period in the previous year, an increase of 14 per cent," stated RCC chairman Ahmed bin Alawi bin Abdulla Al Ibrahim.
The rise in profit is attributed to higher sales volume and better price realisation in spite of competitions faced by the company, both in the domestic and in the export markets compared with that in the previous year. However, the fall in the market value of investment has some impact in the net profit.
The construction segment in Oman is expected to be on upswing during the current year and for further next three- to four-year period in view of large expenditure plan.
In spite of growth in construction segment, the cement industry in Oman have been severely impacted from the supplies of UAE exporters at unsustainable prices, and decline in Yemen market due to social unrests. "The situation is undergoing a positive change with the UAE construction industry being set on a motion with additional commitments in expenditure, significant developmental expenditure slated in Saudi Arabia seeking probable import of cement, and then the Yemen market is showing some strong signals for growth. Hopefully, both volume and price realisation would be on the recovery side during 2012."
In the first quarter, Raysut Cement has done well in pursuing its non-traditional markets beyond its traditional base and hopes that the coming period would enable it to effectively compete with the onslaught of competitions and stay well ahead in all fronts of production, sales and profitability in all the units and markets.
During the period, the sales revenue earned by Pioneer Cement stood at RO7.96 million compared with RO5.31 million achieved in the same period of the previous year. Pioneer Cement has earned a profit of RO1.08 million in spite of the severe competitions faced by the company in the UAE market.
Raysea Navigation and Raybulk Corporation, two of the subsidiaries that provide with shipping services, have earned profit of RO0.066 million and RO0.106 million during the period of three months.
The group as a whole has sold 60,121 tonnes of clinker and 996,560 tonnes of cement during the quarter ended on March 31, 2012 against 32,982 tonnes and 831,844 tonnes respectively in the same period of previous year.
The company alone has sold 615,550 tonnes of cement and 50070 tonnes of clinker during the period against 569,355 tonnes of cement and 32,982 of clinker in the corresponding period in the previous year, registering an increase of about eight per cent on cement and an increase of 52 per cent in sale of clinker.
© Times of Oman 2012
