Oman Cement net profit rises 37%

Muscat - 

Oman Cement Co has reported a 36.7 per cent growth in its net profit for full-year 2012.

Net profit rose to RO17.5mn from RO12.8mn the previous year, according to a company disclosure to the Muscat Securities Muscat.

Its total revenue surged 17 per cent to RO59.3mn in 2012 from RO50.7mn in 2011.

“The growth in net profit is mostly volume driven with some recovery in local cement prices. Owing to the fact that no major extra cement is being imported, prices have stabilised in the market over the last quarters,” said Sameer Kattiparambil, AVP - research at EFG-Hermes.

Although there will be good demand for cement in 2013 due to government spending on infrastructure projects and increased construction activity, analysts expect no increase in imports. Cement producers in the sultanate have faced tough competition over the last few years from UAE suppliers who sell cement in large quantities at lower prices in Oman.

“Since export prices have gone up, there has not been much addition to the profits of UAE exporters. Imports will continue to a limited extent but there will be no major increase. Oman Cement is working up to 96 per cent of its capacity, so in the future, there is not much room for volume-driven growth,” Kattiparambil told Muscat Daily.

Total expenditure of Oman Cement in 2012 rose 9.4 per cent to RO39.6mn from RO36.2mn in 2011.

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