Displaying items by tag: Oman Cement

Oman: Oman Cement has reported a net profit after tax of US$23.1m for the first nine months of 2024. This represented a 20.2% rise compared to the US$19.2m that the company made in the first nine months of 2023. Oman Cement’s revenue for the first nine months of 2024 was US$136.4m, a 2.9% fall compared to the US$140.5m it recorded in the same period of 2023.

China: Huaxin Cement grew its revenue and profit in 2023 by growing its concrete market domestically and increasing its international business. Its revenue rose by 11% year-on-year to US$4.67bn in 2023 from US$4.21bn in 2022. However its operating revenue from cement and clinker declined. The group’s net profit increased by 2% to US$382m from US$373m. Its cement sales volumes grew by 2% to 76.8Mt from 75.3Mt. Concrete sales volumes mounted by 66% to 27.3Mm³.

The share of its international business grew by 16% in 2023 from 13% in 2022. Notable acquisitions in 2023 included the purchases of Oman Cement and InterCement’s assets in Sub-Saharan Africa.

Oman: Oman Cement Company recorded sales of US$189m in 2023, up by 4% year-on-year from US$181m in 2022, Reuters has reported. The company’s net profit also grew during the year, by 16% to US$15.1m from US$13m.

Oman: Oman Cement recorded sales of US$95.6m during the first half of 2023, Reuters has reported. The figure corresponds to a year-on-year rise of 5.1% from US$90.9m in the first half of 2022. The producer’s net profit after tax also rose, by 31% year-on-year to US$10.9m from US$8.31m.

Oman: Huaxin Cement informed the Muscat Stock Exchange of its intent to buy a further 5.1% stake in Oman Cement on 3 July 2023. Zawya News has reported that this would increase the China-based group's stake in Oman Cement to 64.7%. It acquired its existing 59.6% in the producer for US$193m earlier in 2023, but subsequently revised the price to US$200m.

Oman: Abra Holdings has submitted an offer to acquire a 15% stake in Oman Cement. Reuters has reported that the board of Oman Cement confirmed that it is not seeking competing offers.

Oman: Oman Cement has appointed Zhu Yaping as its chief executive officer. The appointment follows the retirement of Salim Abdullah Al Hajri in the post.

Zhu Yaping holds over 30 years of experience in the cement sector working for Huaxin Cement. His roles for the cement producer included that of plant manager in Hubei, maintenance manager in Wuhan and the company’s Head of Cement Industrial Performance. He holds a master’s degree in control theories and engineering from the Wuhan University of Technology and a bachelor’s degree in electrical engineering from the Nanjing University of Aeronautics and Astronautics.

Oman: Oman Cement, which is undergoing a change of ownership to China-based Huaxin Cement, reported a revenue of US$50.7m in the first quarter of 2023. This represented a 15% rise year-on-year compared to the first quarter of 2022, when its revenue was US$43.2m.

The company reported net profit of US$5.2m, a 126% year-on-year jump due to one-off earnings, as total expenses increased by 7% year-on-year US$44.2m.

Huaxin Cement completed its acquisition of a majority stake in Oman Cement this week. The China-based company estimated that the purchase price was around US$193m. Following the transaction with a subsidiary of the Oman Investment Authority, the country’s sovereign wealth fund, the cement producer now controls just under a 60% share in Oman Cement.

A key part of the deal includes Oman Cement’s integrated plant at Ruwi in the north of the country. The three-line unit has clinker and cement production capacities of 2.6Mt/yr and 3.6Mt/yr respectively. With the partial ownership share of 60% taken into account, this places the capacity purchase price at around US$124/t, a lower figure for capacity compared to other international acquisitions.

Oman Cement has a couple of new projects in the pipeline that have been mentioned on and off previously over the last year or so. These include the construction of a new 10,000t/day fourth production line, an upgrade to line 3 to 4000t/day from 3000t/day at present and plans for a new plant at the Special Economic Zone (SEZ) at Duqm. The company said it was looking for a contractor to carry out the upgrades at the Ruwi plant. However, Rashid bin Sultan al Hashmi, the chair of Oman Cement, said in the company’s annual results for 2022 that the Duqm project, operating under the name Al Sahawa Cement, had run into problems with the supply of gas for the proposed unit. Another recent development was the signing of a deal between Omani Environment Services Holding Company (Be’ah) and Oman Cement for the supply of refuse-derived fuel (RDF). As an aside, that last one may also have received a boost this week with the news that the local Environment Authority has suspended licenses for the export of used tyres from the country.

How these existing projects will fare under the new ownership remains to be seen, but Huaxin Cement has a track record for developing new cement production capacity outside of China. The cement producer describes itself as de-facto controlled by Switzerland-based Holcim although Holcim said in its annual report for 2022 that Huaxin Cement is a joint-venture. It currently operates plants in Cambodia, Kyrgyzstan, Malawi, Nepal, Tajikistan, Tanzania, Uzbekistan and Zambia and says that it has 10 additional projects in Africa, the Middle East and elsewhere in preparation for future business expansion. In 2022 it started operating a 3000t/day production line at Nepal Narayani and commenced the second stage of a project to build a 4000t/day clinker line at Maweni in Tanzania. Plus, as mentioned in our recent roundup of China-based producers, 13% of the group’s operating revenue derived from business outside of China in 2022 compared to 8% in 2021.

Other producers from outside of Oman have also been active locally in 2023. In late January 2023 India-based UltraTech Cement agreed a deal to buy a 70% stake in Duqm Cement Project International from Seven Seas for US$2.25m. The agreement covered a limestone mining lease that UltraTech Cement said was important for “raw material security.”

The other big development in the Oman cement market since we last covered the country in September 2021 was an intervention by the Capital Market Authority (CMA) on Raysut Cement. The chief financial officer resigned in November 2022 before the CMA questioned the company’s financial results for the second quarter of 2022. The CMA then replaced the board of Raysut Cement in December 2022 saying it had detected ‘material misrepresentation’ in the company’s third quarter results.

The last four months or so have marked a turning point for the local cement sector with a change in leadership for the two largest producers. Oman Cement reported strong growth in 2022 although it warned of “low priced cement being supplied by competitors.” Raysut Cement, unsurprisingly, recorded a loss in 2022. The construction market in the country is expected to grow as the economy leaves the coronavirus period behind, mounting energy prices boost national revenue and potentially some of this heads into infrastructure development. This puts the new management at both producers in a good position going forward.

Oman: Oman Cement has appointed Xu Gang, Chen Qian, Ian Riley and Li Yeqing as temporary board members following its acquisition by China-based Huaxin Cement. The new personnel will remain in place until the company’s next ordinary general meeting. Former chair Rashid Sultan Al Hashmi and board members Mohammed Sulaiman Al Salmi, Mohammed Abdullah Al Harthi and Sami Abdullah Al Sinani have also resigned.

Li Yeqing is the chief executive officer (CEO), secretary of the party committee and senior engineer at Huaxin Group. He holds a bachelor degree in engineering, a master’s degree in engineering and a Ph.D in business administration. He joined Huaxin Cement in 1987. He also works as the vice chair of the China Building Materials Federation and China Cement Association, and chair of the Hubei Building Materials Federation. He previously held the post of executive vice chair of the Sixth Council of China Building Materials Federation.

Xu Gang is the vice president of the Huaxin Cement. He has worked in various management roles for cement companies such as safety engineer and technical manager. He has also worked as a director for Lafarge and Huaxin Cement. Xu Gang holds a master’s degree in business administration (MBA) from Tsinghua University, a bachelor’s degree in safety engineering from the China University of Geosciences and a bachelor's degree in financial management from the Huazhong University of Science and Technology.

Ian Riley is the head of the World Cement Association. Prior to this, he held various positions such as an executive director of Tianqiao International (Shanghai) Consulting Company, the president of Asilinko Information Technology (Shanghai), the general manager of SIP (Shanghai), Information Director and the assistant and the vice president to the Xeroc. He also served as the head of Holcim Group's China region. Riley holds a bachelor’s and a master’s degree in engineering from the University of Cambridge.

Chen Qian is the vice president and chief financial officer (CFO) of Huaxin Group. Previously he held positions in various financial positions including senior auditor, senior consultant and CFO for several companies. Chan Qian is a Chinese Certified Public Accountant and a fellow member of the Chartered Global Management Accountant. He holds a bachelor's degree in world economics from Fudan University and a master's degree in business administration from the Anderson School of Business in the US.