(MENAFN- Muscat Daily) Oman Cement Co posted a 46.7 per cent decline in net profit for the first quarter of 2014 on lower production following the shutdown of one of its kilns for capacity upgradation.
The company's net profit declined to RO3.7mn for the three-month period ended March 31, 2014, as against RO6.9mn during the corresponding period of the previous year, according to the company's filing to the Muscat Securities Market (MSM) on Tuesday.
Oman Cement has embarked upon a capacity upgradation project for one of its kilns (K-1), and the unit, on commencement of operations, is expected to increase output by 2,700 metric tonnes (MT) per day.
''Since the project is in the final stage and nearing completion, and as a part of planned project activity, this kiln was shut down for the entire period of the first quarter. This adversely affected our production and sales, which is lower compared with our performance in the first quarter of 2013, and the impact is reflected in lower profits for the current period,'' said Dr Abdullah Abbas Ahmed, chairman of Oman Cement, in the directors' report.
He said, ''We are confident that with the commencement of additional production, planned towards the end of the second quarter, with this upgraded kiln, the company will be able to improve its performance.''
The company's sales dropped 17 per cent to 521,667 MT of cement during the first quarter of 2014, as against the sale of 628,553 MT during the corresponding period of 2013.
In value terms, sales for the first three months of 2014 were at RO13.04mn, as against RO15.65mn during the corresponding period of the previous year, lower by 16.7 per cent.
Oman Cement said it has also finalised arrangements with a leading bank in Oman to finance its project for the installation of a new cement mill of 150TPH capacity and the creation of supportive infrastructure of cement silos.<
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.