real estate

Raysut Cement hits profit trail after two loss-making quarters

November 4, 2020

Muscat: After two consecutive loss-making quarters, the Muscat Stock Market (MSM) listed Raysut Cement Company (RCC) has returned to the profit trail with a net group profit of OMR512,121 in the third-quarter ending on September 30, 2020.

According to a financial disclosure posted on MSM, RCC is seen to be poised to weather the challenges posed by the pandemic COVID-19 market uncertainties, which had taken a toll on the company’s financials since the beginning of the year.

According to RCC’s MSM posting, RCC posted a net group profit of OMR512,121 in the third-quarter ending on September 30 2020. This is the first quarter in this year RCC is reporting a profit after consecutive losses after tax in the first half of the year.
According to industry experts, the Q3 turnaround is a significant come back even though RCC loss in Q2 was at OMR6,867,529.

The losses have been attributed to the impact from the pandemic’s widespread negative impact the world over and specifically on verticals like construction, infrastructure etc. – major demand drivers for RCC. Returning to profitability was a sign of its agility and resilience, according to them. The comeback growth also should be seen in the context of restraints on supply to the company’s export markets because of pandemic related transportation issues.

In Q3, RCC generated group revenue of OMR20.415 million against OMR20.401 million in the comparable period last year, and 6.25 per cent up compared to reported in the Q2 2020 with OMR19.212 million. A significant share of the revenue growth was contributed by Sohar Cement Factory, which RCC acquired in May 2019, while the parent company RCC and its UAE subsidiary, Pioneer Cement also reported salient come back to robustness, indicating a growth surge in the pipeline.

RCC recently acquired 75 per cent shares of Lafarge Holcim Maldives Ltd, a cement terminal located at Thilafushi Islands, Maldives.

timesofoman

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