Oman Cement’s net profit rises 10% on higher sales

Muscat - 

Helped by higher sales turnover and investment income, the net profit of Oman Cement Co rose by ten per cent for the year ended December 31, 2016. The company’s 2016 net profit increased to RO12.87mn as against RO11.7mn reported in the previous year.

‘The increase [in profit] is mainly due to higher turnover and higher investment income. However, this was partly offset by increase in operational cost brought about by shutdown of Kiln for a period longer than planned’, Oman Cement said in its yearly report submitted to the Muscat Securities Market on Tuesday.

The company’s board of directors recommended a dividend of 30 per cent of capital or 30bz per share subject to approval of shareholders in the annual general meeting.

The cement producer sold 2,300,291MT of cement in 2016, a growth of 10.6 per cent against 2,078,641MT sold during the previous year. In value terms, the company’s sales grew by 8.5 per cent to RO56.6mn compared with RO52.1mn during the previous year.

With further improvement in cement production capacity due to installation of new cement mill, Oman Cement said it achieved higher production levels and improved performance last year. It said, ‘With the company’s well structured pricing policy, we hope that even with the continued competition the company will continue to do well in retaining its market share’.

Oman Cement said it hired the services of a consultant to study and eliminate the bottlenecks in the existing plant for performance enhancement. Based on the consultant’s study report and recommended jobs, a tender has been floated by the company to hire an engineering, procurement and construction (EPC) contractor.

In order to increase its packing and loading capacity, Oman Cement said it has awarded an EPC contract for installation of new rotopacker and vacuum type truck loading machine to China’s CNBM International Engineering Co at a total cost of US$4mn.

Oman Cement and Raysut Cement have also registered a new joint venture limited liability company (LLC) named Al Wusta Cement Co. The new company proposes to set up a new cement plant in Duqm Special Economic Zone in near future subject to detailed feasibility studies.

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