UAE-based manufacturer Fujairah Cement Industries posted a net loss of AED29.6 million ($8 million) for the first half of the year, as revenues fell and rising energy costs impacted the business.
Revenue for the period reached AED176.3 million, down by 19% compared to a year earlier, due to less cement and clinker sales and rising coal cost, the company said in a statement on Abu Dhabi Securities Exchange (ADX).
The company, which has recently obtained approval to cease trading its shares on Boursa Kuwait, confirmed that soaring inflation caused by current global geopolitical tensions has impacted the cement industry.
"Increasing inflation due to current geopolitical situation has increased the cost of fuel and energy across the globe which has adversely affected the profitability of cement plants," Fujairah Cement said.
The company is expected to cease trading on Boursa Kuwait later this year, following an approval from the Capital Market Authority-Kuwait.
(Writing by Cleofe Maceda; editing by Seban Scaria)