Cambridge Forecast Group Blog

Dear Investor

Oman Cement Company (OCC) is one of the two cement companies in Oman. The company’s plant is located in Rusayl in the Northern part of Oman. Its current clinker capacity is 1.2mtpy, while the cement capacity is 2.5mtpy, including a new grinding mill of 1.24mtpy likely to be on stream by the end of April 2007. As against these, the company produced 1.26mt of clinker, 1.80mt of cement and sold 1.91mt of cement during 2006. It dominates the domestic cement market in Oman with a market share of about 70% in 2006. The company also exported about 0.1mt cement during the year. The consolidated total revenue of the company was RO49.7mn for the year ended December 2006, an increase of 13.1 per cent from RO44.0mn in the previous year. The consolidated net profit of the company, on the other hand, increased by 13.3 per cent to 20.6mn in 2006 from RO18.1mn in 2005. The upward trend in construction activity witnessed in Oman in the last three years is expected to continue in the near-term due to expectations of sustained high oil prices and abundant liquidity. This liquidity is expected to continue to be directed to development of massive real estate and infrastructure projects to meet the needs of a growing population. Construction projects worth an estimated US$25bn are said to be at various stages of development at present in the country. OCC is expected to benefit from the resultant cement demand.

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