Raysut Cement posts profit as revenue rises

MUSCAT, AUGUST 16
Raysut Cement Company SAOG returned to profit in the first half of 2026, posting a group net profit after tax of RO 2.7 million against a loss of RO 2.8 million a year earlier, as revenue rose 22 per cent and the company continued work on a capital restoration plan required under company law.
Revenue for the six months to June 30 climbed to RO 50.584 million from RO 41.404 million in the corresponding period of 2025, according to the board of directors’ report on the unaudited group results. Gross profit rose 76 per cent to RO 8.854 million, while EBITDA increased 193 per cent to RO 8.313 million.
The group swung to an operating profit of RO 3.453 million from an operating loss of RO 140,000 a year earlier. Finance costs eased 16 per cent to RO 1.997 million.
The half-year figures include a one-off gain. The board said the company engaged an independent expert during the period to review the remaining useful life of production assets at the Salalah plant and that the revised estimates produced a positive adjustment of RO 83 million that has been incorporated into the H1 2026 results. The adjustment accounts for close to a third of the reported net profit.
The board described the period as confirmation of a wider turnaround, citing what it called a third consecutive operationally positive quarter and attributing the improvement to tighter governance, a leaner organisational structure, disciplined cash management and the structured resolution of legacy liabilities.
“The strength of our core business is visible in our operational cash generation”, the report said, pointing to the EBITDA increase as evidence of improved commercial discipline and margin recovery.
The company is meanwhile pursuing a capital restoration plan approved at an extraordinary general meeting, in compliance with Article 147 of the Commercial Companies Law. The board said it is negotiating a secured shareholder loan, describing the structure as non-dilutive and intended to inject liquidity to settle legacy liabilities and fund maintenance capital expenditure.
Raysut also flagged cost pressures during the half. The board cited regional shipping constraints and port congestion that pushed up maritime freight rates, alongside inflation in UAE raw material prices and a temporary regional shortage of coal in May and June. It said management responded by adjusting fuel and raw material sourcing, reorganising regional logistics and maintaining flexible pricing.
Looking to the second half, the board struck what it termed a position of cautious optimism, acknowledging geopolitical uncertainty and potential shifts in supply and demand while pointing to infrastructure development and urbanisation in Oman and the UAE as supportive of cement demand.