31 July 2013
Muscat: Oman Cement Company (OCC), the Sultanate's second large cement producer, said that it is planning to set up a ready mix concrete plant, which is in addition to its plans for increasing cement grinding capacity by installing a new cement mill of 150 tonnes per hour capacity in the near future. The majority state-owned OCC has already appointed a consultant for the ready mix concrete plant, the company said in it's a report. Also, the process of identifying a suitable vendor for the cement mill is in an advanced stage of finalisation.
OCC also said that the work on capacity upgradation of kiln -1 continues to be in progress and all possible efforts are being made by the company to speed up the progress. OCC also said that it is planning to improve its pollution control equipment of Line 2 for clinker and a consultant has been appointed. The OCC has achieved a net profit of OMR9.29 million for the first six months of 2013, which is against OMR9.02 million posted for the same period last year.
The company's sales revenue for the six month period was OMR27.34 million, which is against OMR28.06 million posted for the same period last year.
The OCC produced 1.06 million tonnes of cement in the first six months of 2013, which is against 1.12 million tonnes for the same period last year.
Dumping by UAE producers
Referring to market demand, the company said there has been competition from neighbouring countries. "With the company's well structured pricing policy, we hope that in spite of stiff competition with other cement manufacturers, particularly from neighbouring countries, we will continue to do well in retaining the marketshare." The increase in government spending for infrastructure projects will drive demand for cement.
Meanwhile, Raysut Cement Company --the Sultanate's biggest cement producer -- also said that the supplies of cement from UAE are likely to continue, as the developments in UAE would still to absorb the local capacity, leading to a pressure on demand and price in Oman market during the year.
The company's strategy to expand its market base through supplies to Yemen, East Africa and to other countries has helped through rise in supplies there, particularly in Yemen market.
"Given the above back ground the company has met with challenges effectively by holding on to sales and enlarging the profit for the group as a whole by optimising sales in varied markets."
Raysut Cement revenue
During the period ended on June 30, 2013, the Raysut Cement group has earned a revenue of OMR49.52 million as against OMR49.55 million, and thereby retained the revenue at last years' level broadly. The profit before tax stood at OMR16.38 million as against OMR13.7 million in the same period of the previous year, an increase about 20 per cent.
In spite of the severe price competition from the UAE suppliers, and the volatility in the export market, Raysut Cement has achieved the sales revenue out of its Salalah operation of OMR36.33 million during the period against OMR33.86 million achieved during the corresponding period in the previous year, an increase of 7 per cent.
Profit before tax of the parent company stood at OMR13.89 million for the six month period, as against OMR10.51 million earned during the corresponding period of last year, an increase of 32 per cent. The increase in profit at the end of parent company is attributable to higher sales volume, better price realisation through market optimisation as well as due to reduction in cost compared with that in the previous year. The increase in the market value of investment since the beginning of the year has some impact in the net profit too.
Muscat: Oman Cement Company (OCC), the Sultanate's second large cement producer, said that it is planning to set up a ready mix concrete plant, which is in addition to its plans for increasing cement grinding capacity by installing a new cement mill of 150 tonnes per hour capacity in the near future. The majority state-owned OCC has already appointed a consultant for the ready mix concrete plant, the company said in it's a report. Also, the process of identifying a suitable vendor for the cement mill is in an advanced stage of finalisation.
OCC also said that the work on capacity upgradation of kiln -1 continues to be in progress and all possible efforts are being made by the company to speed up the progress. OCC also said that it is planning to improve its pollution control equipment of Line 2 for clinker and a consultant has been appointed. The OCC has achieved a net profit of OMR9.29 million for the first six months of 2013, which is against OMR9.02 million posted for the same period last year.
The company's sales revenue for the six month period was OMR27.34 million, which is against OMR28.06 million posted for the same period last year.
The OCC produced 1.06 million tonnes of cement in the first six months of 2013, which is against 1.12 million tonnes for the same period last year.
Dumping by UAE producers
Referring to market demand, the company said there has been competition from neighbouring countries. "With the company's well structured pricing policy, we hope that in spite of stiff competition with other cement manufacturers, particularly from neighbouring countries, we will continue to do well in retaining the marketshare." The increase in government spending for infrastructure projects will drive demand for cement.
Meanwhile, Raysut Cement Company --the Sultanate's biggest cement producer -- also said that the supplies of cement from UAE are likely to continue, as the developments in UAE would still to absorb the local capacity, leading to a pressure on demand and price in Oman market during the year.
The company's strategy to expand its market base through supplies to Yemen, East Africa and to other countries has helped through rise in supplies there, particularly in Yemen market.
"Given the above back ground the company has met with challenges effectively by holding on to sales and enlarging the profit for the group as a whole by optimising sales in varied markets."
Raysut Cement revenue
During the period ended on June 30, 2013, the Raysut Cement group has earned a revenue of OMR49.52 million as against OMR49.55 million, and thereby retained the revenue at last years' level broadly. The profit before tax stood at OMR16.38 million as against OMR13.7 million in the same period of the previous year, an increase about 20 per cent.
In spite of the severe price competition from the UAE suppliers, and the volatility in the export market, Raysut Cement has achieved the sales revenue out of its Salalah operation of OMR36.33 million during the period against OMR33.86 million achieved during the corresponding period in the previous year, an increase of 7 per cent.
Profit before tax of the parent company stood at OMR13.89 million for the six month period, as against OMR10.51 million earned during the corresponding period of last year, an increase of 32 per cent. The increase in profit at the end of parent company is attributable to higher sales volume, better price realisation through market optimisation as well as due to reduction in cost compared with that in the previous year. The increase in the market value of investment since the beginning of the year has some impact in the net profit too.
© Times of Oman 2013
