Two cement companies post higher revenues

14/10/2015 07:53 AST

Oman Cement said its sales revenue increased to RO 12.180 million for the Q3 of 2015 achieving an increase of 4 per cent on year-on-year basis. At the same time on a quarter-on-quarter basis the sales improved by 12.4 per cent.

According to a research note by Gulf Baader Capital Market (GBCM), the company might have assumed RO 25.5 as net realisation, and it would have sold 477,000 metric tonnes of cement during the quarter.

"The company had exposure to the local and regional equity markets to an extent of RO 9.686 million as of June 2015. On the back of dismal performance by both the local and regional equities, the company has reported an Investment loss of RO 609,000 for the quarter as against our estimates of RO 485,000", the research report said.

The net profit of the company stood at RO 1.549 million for Q3 as against RO 2.321 million in the same period last year. On a quarter-on-quarter basis the earnings declined by 3.9 per cent."This is higher than our estimates of RO 1.263 million", the report said.

RAYSUT CEMENT

Raysut Cement in its disclosure note to the Muscat Securities Market said the company's sales revenue touched RO 22.554 million for the Q3 registering an increase of 6.1 per cent on a year-on-year basis and 0.7 per cent on quarter-on-quarter basis.

"This is higher than our estimates of RO 19.825 million", the GBCM report said. Assuming RO 24.5 as net realisation for the group, the company would have sold 920,000 metric tonnes of cement during the quarter under review as against our estimates of 825,000 metric tonnes.

The report pointed out that the company reported a fair value loss on financial assets to an extent of RO 507,000 for the quarter.

The Net profit of the company stood at RO 4.845 million for the quarter as against RO 5.286 million in the corresponding period last year.

On a quarter-on-quarter basis the earnings declined by 1.8 per cent.

Oman Daily Observer