Muscat: Raysut Cement Company, the Sultanate's biggest cement producer, said the profit before tax for the group soared by 54.1 per cent to RO13.7 million for the first half of 2012, against RO8.89 million for the same period last year.
The group revenue also showed a robust growth at RO49.55 million from RO43.45 million in the same period of the previous year.
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 of RO33.86 million during the six months against RO29.97 million achieved during the corresponding period in the previous year, an increase of 13 per cent.
Profit before tax of the company stood at RO10.51 million for the six month period, as against RO7.59 million earned during the corresponding period last year, an increase of 38 per cent, stated the company chairman Ahmed bin Alawi bin Abdulla Al Ibrahim. The increase in profit is attributable to higher sales volume and better price realisation through market optimisation on the face of severe competitions faced by the company both in the domestic and in the export markets compared with that in the previous year. However, the increase in the market value of investment has some impact in the net profit.
During the period, the sales revenue net of inter-company adjustments, earned by Pioneer Cement amounts to RO15.69 million compared to RO13.48 million achieved in the same period in the previous year.
Pioneer Cement profit
Pioneer Cement has earned a profit of RO2.93 million as against RO1.20 million in the same period of previous year, in spite of the severe competitions faced by the company in the UAE and Oman markets.
Raysea Navigation and Raybulk Corporation, two of our subsidiaries that provide with shipping services, have earned profits of RO0.09 million and RO0.17 million during the period of six months ending on June 30.
Construction industry is expected to pick up its growth now in the region. A number of formerly suspended programmes have been recalled in UAE leading to higher growth in 2012 and 2013. Oman's construction industry is on positive progression with the industry value expected to grow to a level of over $5 billion from under $4 billion in next three to four years at an average growth rate of about 6 per cent.
"Keeping in pace with the growth in construction segment, prices are slowly moving up in cement industry, and the demand also is on the rise in the region. While these are good news but the supplies in Oman are still under significant pressure from the inflows from UAE making the domestic scenario highly competitive,- said the chairman. However the Yemen and East African Markets with rise in demand have favourable impacts on the company.
The group as a whole has produced 1,756,724 tonnes of clinker and 2,026,863 tonnes of cement during the period ended on June 30, 2012 against 1,709,305 tonnes of clinker and 1,619,245 tonnes of cement in the same period of previous year.
During the period of six months, 1,067,702 tonnes of clinker was produced in Salalah Plant of RCC, against 1,090,630 tonnes produced in the same period lsat year, a fall of 2.1 per cent.
The company produced 1,252,514 tonnes of cement in its Salalah plant, against 997,286 tonnes produced during the corresponding period in the previous year, an increase of 25.6 per cent.
The production of cement has increased substantially.
by 25.2% for the group in order to meet the needs of additional demands for cement in both domestic and export markets. The sale of clinker had to be restrained to boost the sale of cement.
The group as a whole has sold 60121 tonnes of clinker and 2,003,802 tonnes of cement during the half year of 2012 against 286389 tonnes and 1,677,081 tonnes respectively in the same period of previous year.
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