Raysut Cement Group has reported a net loss of RO14.06mn for the year ended December 31, 2020 against a profit of RO2.26mn recorded in the previous full year.
The group recorded loss for the year mainly due to decline in sales volume in the local market on lack of projects and lower sales realisation per tonne of cement and clinker sold in export markets due to stiff competition from the UAE, Saudi Arabia and Iran, Raysut Cement said in its report submitted to the Muscat Securities Market on Sunday.
During the year 2020, Raysut Cement Group earned total revenues of RO90.38mn against RO84.05mn in the previous year, recording an increase of 7.5 per cent. The increase in group revenue was due to the sales from newly acquired company Sohar Cement Factory LLC, Raysut Cement said.
‘The prevailing COVID-19 pandemic has created an unprecedented situation throughout the globe. All mankind, businesses both at domestic and international levels, are passing through a critical phase, our company is no exception to it, hence has suffered significantly. Raysut Cement’s revenues were maintained for the year, however profitability took a severe hit,’ the company said.
Despite severe price competition from the UAE suppliers and volatility in the export markets, the parent company achieved an overall sales revenue of RO60.78mn in 2020 against RO60.33mn in 2019, an increase by 0.74 per cent. The loss after tax of the parent company stood at RO12.38mn for the full year 2020 against a profit of RO0.18mn in the previous year.