Displaying items by tag: Oman
Oman Cement awards US$11m contract to FLSmidth
11 May 2015Oman: Oman Cement Co has awarded a US$11.3m contract for the upgrade of pollution control equipment at a production line to FLSmidth. "To reduce emission levels, the company has awarded the upgrade work for the pollution control equipment for line 2 to FLSmidth. The company has issued a letter of intent in this regard which has been accepted by FLSmidth," said Oman Cement. In a recent report, Oman Cement said that its project for installing an additional 150t/hr cement mill with supporting infrastructure of cement silos and bulk despatches is in progress and is expected to be completed in the fourth quarter of 2015.
Oman: Raysut Cement's operating profit fell by 26.7% in the first quarter of 2015 on a 100% increase in the price of natural gas supplied by the government and rising transportation costs. Group operating profit fell to US$15.6m from US$21.4m in the same period of 2014.
'This is mainly due to the increase in natural gas price by the government to US$3/MMBtu from US$1.5/MMBtu effective from 1 January 2015 and increases in other costs," said Raysut Cement said in its directors' report.
The report said that the quarter that ended on 31 March 2015 was very challenging compared with any of the previous quarters in the recent past. "Gas is a significant component of cost and the price was doubled. Transportation costs are on the rise due to restrictions on tonnage and the cascading effects of all have significant bearing on the cost of the product." In addition, the company said that the disturbances in Yemen, one of Raysut Cement's main export markets, have had a bearing on sales volumes.
During the quarter, group revenue fell by 1.6% to US$63.5m from US$64.5m in the same period of 2014. "Given the situation, the company has done extremely well in the first quarter to reach a level of revenue which is close to that of the previous year. By positioning the products in appropriate markets the average price realisation improved, neutralising the effect of cost increase to an extent. On the other hand, severe competition from UAE suppliers is continuing."
Raysut Cement sold 976,019t of cement and 3958t of clinker during the first quarter of 2015 compared to 100,6024t of cement and 7384t of clinker in the corresponding period of 2014. This represents a decrease by 2.98% in cement and 46.4% increase in clinker.
Oman Cement’s first quarter net profit rises by 3.7%
15 April 2015Oman: Oman Cement has reported a 3.7% rise in its net profit for the first quarter of 2015. It made a net profit of US$9.95m in three months that ended on 31 March 2015, up from US$9.61m in the corresponding period of 2014. Oman Cement's first quarter revenue rose by 10.6% to US$41.4m.
Oman Cement’s 2014 net profit declines by 13% on weaker sales
17 February 2015Oman: Oman Cement's net profit in 2014 declined by 12.8% to US$34.2m from US$39.2m in 2013. The decline was mainly due to a lower volume of cement sales, lower clinker production and higher volumes of imported clinker. Oman Cement imported higher volumes of clinker to bridge a temporary shortfall due to one of its kilns being closed for capacity enhancement.
The company said that it would consider a joint venture project for setting up a new cement plant after detailed studies. It said that its on-going US$39m project to install an additional 150t/hr cement mill with supporting infrastructure of cement silos and bulk despatches is expected to be completed during the fourth quarter of 2015.
Oman Cement sold 2.01Mt of cement during 2014 compared to 2.1Mt in 2013, a decrease of 1.1%. In value terms, total sales dropped by 2.05% in 2014 to US$133m, from US$136m in 2013. "Market demand for cement in Oman remains good due to continued emphasis on infrastructure development. With the company's well-structured pricing policy, we hope that in spite of stiff competition with other cement manufacturers, particularly from neighbouring countries, the company will continue to do well to retain its market share," said Oman Cement's report.
Oman Cement said that government's decision to double the price of natural gas, effective from 1 January 2015, is bound to have a major impact on its performance in the coming years. "Similarly, restrictions on carrying capacity for road transport of materials will also increase the cost of operations. However, we are committed to meet the challenge by directing our efforts towards better cost management," said the report.
Gas prices hiked for cement producers in Oman
01 December 2014Oman: The Ministry of Oil and Gas (MOG) plans to increase the price of natural gas for Raysut Cement Oman Cement from 1 January 2015. Raysut Cement said that the decision would impact its production by 3% in 2015. The company plans to mitigate the financial impact by implementing cost-reduction enhancement initiatives and restructuring prices. Oman Cement said that it plans to minimise the impact by improved productivity cost-controls and restructured pricing.
Raysut Cement to build distribution facility in Duqm, Oman
12 November 2014Oman: Raysut Cement Company (RCC) intends to build a distribution terminal in Duqm and additional silo capacity at its Salalah cement plant. The company is also building an offshore unloader and blow pump system in the north of the country to facilitate bulk cement handling.
"The work is in a progressive stage and the company will reap benefits from these starting from the new facilities from the early part of 2015," said Ahmed bin Alawi bin Abdulla Al Ibrahim, chairman of Raysut Cement.
Oman: Raysut Cement Company has announced an increase in its profit by 8% to US$60.2m during the January - September period of 2014, compared with US$55.7m during the same period of 2013. Revenue was US$183m for the period, compared to US$182m for the same period of 2013.
"While there are positive signs of growth in Oman market, the same is not being translated into cement demand due to severe competition from UAE suppliers. The competition is also being experienced in the Yemen and east African markets," said Raysut Cement.
2.83Mt of cement was sold during the first nine months of 2014, compared with 2.79Mt during the corresponding period of 2013. Some 2.46t of clinker and 2.81Mt of cement was produced during the period, compared with 2.47Mt of clinker and 2.79Mt of cement produced during first nine months of 2013.
India's UltraTech acquires 51% stake in Oman's Awam Minerals
04 November 2014India/Oman: UltraTech Cement Middle East Investments, a wholly owned subsidiary of India's UltraTech Cement, has acquired a majority stake (51%) in Omani gypsum mining firm Awam Minerals LLC.
Awam Minerals has a license to mine substantial gypsum deposits in the south of Oman. It's gypsum mining license will serve as a captive mine for the network of cement plants owned by UltraTech Cement in India, two grinding units and a cement plant in the UAE, as well as a grinding unit in Bahrain through its Middle East subsidiary.
Oman: Raysut Cement reported a 17.8% increase in quarterly net profit after tax in the third quarter of 2014, according to Reuters. It made US$13.8m in July – September 2014 compared with US$11.7m in the corresponding period of 2013.
Raysut Cement and Barwaaquo to build a cement terminal in Somaliland
17 September 2014Somaliland: Oman's Raysut Cement Co has signed a joint venture agreement with Barwaaquo Cement Co to build a terminal at Berbera port in Somaliland for the packaging and distribution of cement. Salim bin Alawi bin Mohammed Baabood, Raysut Cement's CEO, signed the agreement with Ismail Saeed Hussain, chairman of Barwaaquo Cement.
"Pursuant to this agreement a terminal shall be constructed for the packaging and distribution of bagged and bulk cement using the latest technology at Berbera Port with a storage capacity of 12,000t," said Baabood. He added that the total investment cost of the project is about US$7.5m.