MUSCAT, MAY 22
Raysut Cement Company SAOG returned to profitability in the first quarter of 2026 after a prolonged period of financial strain, but warned that significant gas-related liabilities and liquidity pressures continue to cast doubt over its ability to continue operating.
According to financial reports filed with the Muscat Stock Exchange, the company reported a net profit of RO 1.45 million for the three months ended March 31, 2026, compared with losses in previous periods.
Sales rose 25 per cent year-on-year, supported by stronger pricing strategies, customer expansion and tighter operational cost discipline, the company said.
Despite the operational improvement, Raysut Cement said accumulated losses remained substantial, reaching RO 64.98 million at the group level and RO 69.14 million for the parent company.
The company also disclosed significant net current liabilities of around RO 74.86 million, while shareholders’ equity at the parent company level remained fully eroded.
“The financial conditions indicate the existence of material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern,” the company said in the filing.
Raysut Cement highlighted outstanding obligations linked to gas supplies as one of the key risks facing operations.
The company said overdue obligations to its main gas supplier stood at RO 44 million at the end of March 2026, in addition to other payables amounting to RO 13 million.
The filing noted that uninterrupted gas supply remains critical for the continued operation of the company’s Salalah plant, adding that no final settlement agreement had yet been reached with the supplier.
Raysut Cement said there remains a risk that the supplier could demand immediate repayment, which may place additional pressure on cash flows and require further shareholder support.
The company added that its board continues to advance a capital restoration plan approved under Oman’s Commercial Companies Law, alongside a proposed shareholder loan aimed at supporting liquidity, settling legacy supplier dues and financing maintenance-related capital expenditure.
The proposed funding plan remains subject to shareholder approval and regulatory clearance.
Raysut Cement has been undergoing restructuring after the Financial Services Authority dissolved the company’s previous board in 2022 following fraud-related issues linked to the former management and appointed a temporary board.
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