Oman- Raysut Cement's net profit advances 34

5/4/2016 2:49:11 PM

(MENAFN- Muscat Daily) Muscat-

Raysut Cement Co reported a 34 per cent growth in net profit for the three months to March. Group net profit rose to RO8.08mn in the 2016 first quarter from RO6.03mn in the corresponding period last year.

In its first-quarter report released to the Muscat Securities Market on Wednesday the company said various cost reductions initiatives coupled with optimisation of distribution with market share and profitability in mind would be the major area of focus in the coming years.

Raysut Cement said the parent company has signed an agreement for upgrading its gas supply station at Salalah.

It said 'The project shall be commissioned by June 2016. After which the parent company will be able to get additional 40000 standard cubic metre per day of gas. This is subject to acceptance from the Ministry of Oil and Gas. Upon project completion the production capacity of cement shall be increased to about 130000-140000MT per annum.'

Group sales stood at 1.02mn tonnes of cement during the first quarter of 2016 an increase of 4.31 per cent from 972224 tonnes sold in the same period last year. The parent company booked a 2.39 per cent growth in sales which came in at 644504 tonnes while its UAE subsidiary Pioneer Cement sold 390537 tonnes of cement a 12.68 per cent year-on-year increase.

Group revenue increased 3.52 per cent to RO25.29mn from RO24.43mn. 'In spite of the severe price competition from UAE suppliers and volatility in the export market the parent company achieved sales revenue of RO17.73mn an increase by 1.26 per cent' the company said.

Pioneer Cement earned a profit of RO1.75mn against RO1.35 in the first quarter last year an increase of 29.63 per cent.

Raysut Cement said construction of its Duqm terminal which was set for completion by the end of last month is expected to ease supply of cement for development in the area.

The sultanate's largest cement producer said it is planning a 150-tonnes-per-hour rotary packing machine with auto truck loader and additional attachment for palletised sling bags at its Raysut plant to provide larger and faster packing capability.

It added work is in progress on Pioneer Cement's new silo which will provide an additional capacity of 12000MT. It is expected to be commissioned this year.

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