Oman: Raysut Cement has reported a 62% fall year-on-year in its net profit for the three months to 31 March 2017, due to lower sales volume and increased taxes this year. The group net profit fell to US$8.0m against a group net profit of US$21.0m during the corresponding period of 2016.
The cement producer said that its profit dropped because of significant increase in cost of electricity, lower sales volumes and an increase in the tax rate from 12% to 15%.
The group as a whole sold 0.76Mt of cement during the period from 1.02Mt of cement sold previously, a year-on-year decline of nearly 25%. While sales at the parent company fell by 19%, Raysut Cement's UAE subsidiary Pioneer Cement recorded a 35.4% decline in sales volumes. Revenue earned by Pioneer Cement dropped by 34.3% to US$13.3m compared to US$20.3m.