Displaying items by tag: Oman

Oman: Raysut Cement has reported an 8.5% decrease in its net profit in the third quarter of 2015, according to Reuters. The company made US$12.6m in the three months that ended on 30 September 2015, compared with US$13.7m in the same period of 2014. Two analysts polled by Reuters have forecast that Raysut Cement would make a quarterly net profit of US$10.9 – 11.1m.

Somalia/Oman: Raysut Cement is in the process of setting up a subsidiary firm, Barqaaqo Cement Company, to supply cement mostly to Somalia through a newly built terminal there. Raysut Cement will have 51% stake in the newly-formed Barwaaqo Cement Company.

Oman: According to Reuters, Raysut Cement posted a 33% drop in its second-quarter net profit. It made US$12.8m in the second quarter of 2015 compared with US$19.1m in the same period of 2014. Raysut Cement reported a first-half post-tax profit of US$28.5m compared to US$40.5m in the same period of 2014.

Oman: According to Middle East North Africa Financial Network, Oman Cement has reported a more than 40% decline in net profit for the first six months of 2015. Net profit fell to US$14.1m from US$23.6m a year earlier.

Oman Cement's sales revenue declined marginally to US$65.7m in the first half of 2015 compared with US$66.7m in the corresponding period of 2014. Investment and other income fell sharply by 54.1% to US$4.68m from US$10.2m in 2014. As a result, Oman Cement's total revenue fell by 7.7% US$70.9m.

In June 2015, Oman Cement disclosed that due to operational difficulties it had to prolong the shutdown of one of its kilns. The kiln, with 4000t/day clinker production capacity, was closed for planned maintenance, which was to be completed in early June 2015. Oman Cement warned that the prolonged shutdown of a kiln would have an impact on its second-quarter performance.

Oman Cement's total expenses rose by 8.2% to US$55.3m in the first six months of 2015 compared to US$51.2m in the same period of 2014. The Ministry of Oil and Gas had increased the price of natural gas supplied to industrial companies by 100% from 1 January 2015. As such, Oman Cement's gas price was hiked from US$1.5/mmbtu to US$3/mmbtu. The company expects its gas costs to rise by an estimated US$17.2m in 2015.

UAE: According to a Companies and Markets report, after the economic downturn of 2008 - 2009, the cement market in the UAE is showing a positive rebound and is expected to grow by 7.56%/yr in 2014 - 2019.

The UAE is currently producing double its cement demand. Over 50% of the cement produced in the UAE is exported to Oman, Egypt and other African countries. However, analysts believe that in the coming years the cement export share will decline to meet the growing domestic demand.

The growth of the cement market in the UAE is being primarily led by a surge in construction investment because of the revival of economy. The government will invest US$700bn in the next 15 years towards the infrastructure development in the country. Ahead of Dubai EXPO 2020 and UAE National Vision 2021, major investment will be directed toward transport and power infrastructure.

Oman: According to the Middle East North Africa Financial Network, Oman Cement has said that due to operational difficulties, it has had to prolong the shutdown of a 4000t/day kiln for planned maintenance. CEO Jamal al Hooti said that the closure has resulted in lower production and sales in recent months, which has had an impact on company performance during the current quarter.

Oman: Oman Cement Co has awarded a US$11.3m contract for the upgrade of pollution control equipment at a production line to FLSmidth. "To reduce emission levels, the company has awarded the upgrade work for the pollution control equipment for line 2 to FLSmidth. The company has issued a letter of intent in this regard which has been accepted by FLSmidth," said Oman Cement. In a recent report, Oman Cement said that its project for installing an additional 150t/hr cement mill with supporting infrastructure of cement silos and bulk despatches is in progress and is expected to be completed in the fourth quarter of 2015.

Oman: Raysut Cement's operating profit fell by 26.7% in the first quarter of 2015 on a 100% increase in the price of natural gas supplied by the government and rising transportation costs. Group operating profit fell to US$15.6m from US$21.4m in the same period of 2014.

'This is mainly due to the increase in natural gas price by the government to US$3/MMBtu from US$1.5/MMBtu effective from 1 January 2015 and increases in other costs," said Raysut Cement said in its directors' report.

The report said that the quarter that ended on 31 March 2015 was very challenging compared with any of the previous quarters in the recent past. "Gas is a significant component of cost and the price was doubled. Transportation costs are on the rise due to restrictions on tonnage and the cascading effects of all have significant bearing on the cost of the product." In addition, the company said that the disturbances in Yemen, one of Raysut Cement's main export markets, have had a bearing on sales volumes.

During the quarter, group revenue fell by 1.6% to US$63.5m from US$64.5m in the same period of 2014. "Given the situation, the company has done extremely well in the first quarter to reach a level of revenue which is close to that of the previous year. By positioning the products in appropriate markets the average price realisation improved, neutralising the effect of cost increase to an extent. On the other hand, severe competition from UAE suppliers is continuing."

Raysut Cement sold 976,019t of cement and 3958t of clinker during the first quarter of 2015 compared to 100,6024t of cement and 7384t of clinker in the corresponding period of 2014. This represents a decrease by 2.98% in cement and 46.4% increase in clinker.

Oman: Oman Cement has reported a 3.7% rise in its net profit for the first quarter of 2015. It made a net profit of US$9.95m in three months that ended on 31 March 2015, up from US$9.61m in the corresponding period of 2014. Oman Cement's first quarter revenue rose by 10.6% to US$41.4m.

Oman: Oman Cement's net profit in 2014 declined by 12.8% to US$34.2m from US$39.2m in 2013. The decline was mainly due to a lower volume of cement sales, lower clinker production and higher volumes of imported clinker. Oman Cement imported higher volumes of clinker to bridge a temporary shortfall due to one of its kilns being closed for capacity enhancement.

The company said that it would consider a joint venture project for setting up a new cement plant after detailed studies. It said that its on-going US$39m project to install an additional 150t/hr cement mill with supporting infrastructure of cement silos and bulk despatches is expected to be completed during the fourth quarter of 2015.

Oman Cement sold 2.01Mt of cement during 2014 compared to 2.1Mt in 2013, a decrease of 1.1%. In value terms, total sales dropped by 2.05% in 2014 to US$133m, from US$136m in 2013. "Market demand for cement in Oman remains good due to continued emphasis on infrastructure development. With the company's well-structured pricing policy, we hope that in spite of stiff competition with other cement manufacturers, particularly from neighbouring countries, the company will continue to do well to retain its market share," said Oman Cement's report.

Oman Cement said that government's decision to double the price of natural gas, effective from 1 January 2015, is bound to have a major impact on its performance in the coming years. "Similarly, restrictions on carrying capacity for road transport of materials will also increase the cost of operations. However, we are committed to meet the challenge by directing our efforts towards better cost management," said the report.