Oman Cement achieves record production and sales in 2022

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Majority Omani government-owned Oman Cement Company recorded an impressive 44.73 per cent growth in cement sales of 3.456 million MT in 2022, up from 2.388 million MT a year earlier.

The publicly traded company, which is owned 59.58 per cent by Oman Investment Authority (OIA), generated revenues of RO 66.695 million in cement sales last year, up from RO 46.944 million in 2021, an increase of 42.07 million. Net profit after tax climbed 13.35 per cent to RO 5.040 million, up from RO 4.447 million in 2021.

Commenting on the company’s overall performance, Rashid Sultan al Hashmi, Chairman of the Board of Directors – Oman Cement, said: “Your company has produced and sold record quantities of Cement during the period to help the nation and the consumers in overcoming a scarcity created by various challenges faced by consumers due to short supply of cement from other manufacturers and prevailing global macroeconomic trends.”

Muscat-based Oman Cement is also progressing the delivery of a portfolio of initiatives to expand overall capacity and diversify its energy resource base, said the official.

Notable is the company’s ambitious expansion plan centring on the construction of a new production line (Line 4) with a capacity of 10,000 tons per day (TPD) of cement at its complex in Misfah near Rusayl. Additionally, the existing Line 3 production facility is proposed to be upgraded to a capacity of 5,000 TPD of cement, up from the present 4,000 TPD capacity.

The selection of a contractor to implement the projects on an Engineering-Procurement-Construction (EPC) basis is currently underway, according to the Chairman.

A separate plan to set up a new cement plant in the Special Economic Zone (SEZ) at Duqm has “encountered issues in the supply of gas”, Al Hashmi noted in the Directors’ Report for fiscal 2022. The new project, named Al Sahawa Cement, envisions a clinker production capacity of 5,000 TPD.

“The matter is under discussion with the Public Authority for Special Economic Zones and Free Zones (OPAZ) for exploring alternatives such as re-location of the plant site to the close proximity of facilities and utilities...,” the Chairman stated.

Meanwhile, a novel initiative to utilize shredded tyres as an alternative fuel resource for the company’s Misfah operations is currently in the commissioning stage, according to the Chairman.

Under an agreement signed two years ago, Oman Environmental Services Holding Company (be’ah), which oversees the country’s solid waste services sector, has committed to supplying 30,000 tonnes of tyre-derived fuel (TDF) annually in the form of shredded tyres.

But despite the brightening outlook for cement demand in the Sultanate of Oman, intense competition from producers from neighbouring countries remains a persisting challenge, the CEO has warned.

“Though the demand for cement in Oman continues to remain reasonably stable and is expected to remain at 2022 levels, unreasonably low priced cement being supplied by competitors remains a major challenge and the company will continue to monitor market situation,” Salim Abdullah al Hajri added in the Management Discussion & Analysis report accompanying the financial statements for the year.