MUSCAT, JULY 15 - Salalah-based Raysut Cement Company, the Sultanate’s largest cement producer, has announced the loss of one of its ships in the wake of Cyclone Mekunu’s devastating sweep of Dhofar Governorate in May. Raysut II, one of two cement carriers owned by Raybulk Navigation Inc, a subsidiary of Raysut Cement, is understood to have breached just off Salalah during the storm. According to maritime insurers, the 1984-built, 10,880-gross tonnage bulk cement carrier ran aground at Fazayah beach, 18 nautical miles west of Salalah Port.
“The Group is expected to receive RO 4.129 million against insurance for loss of ship and various Cyclone Mekunu claims,” said Ghose Jotirmoy Pratuk Krishna, Chief Executive Officer, Raysut Cement, in a report on the company’s initial unaudited, consolidated financial results for the six months ended June 30, 2018.
The publicly traded company, which is listed on the Muscat Securities Market (MSM), is among scores of industries, hotels and resorts, and other businesses that were adversely impacted when the tropical cyclone slammed into Dhofar on May 25, 2018. Insurance claims against storm-related damage are estimated at well over RO 50 million, although numerous private holdings, seafront homes, farm holdings, and small businesses have no coverage at all, it is learnt.
In a filing to the Capital Market Authority (CMA) in the immediate aftermath of the storm, Raysut Cement — which has its flagship plant at Raysut Industrial Estate — revealed that Mekunu had caused “which has caused some external damages, water logging in the production buildings and stock yard”. This had led to a complete suspension of production for about 8 to 10 days, the CEO stated. In a subsequent filing on May 31, the company announced that operations were back to normal.
For the six months ended June 30, 2018, Raysut Cement Company post a 14.45 per cent uptick in turnover to reach a value of RO 42.813 million, up from RO 37.406 million for the corresponding period of last year. However, gross profit fell 29.60 per cent to RO 7.405 million this year, down from RO 10.084 million last year. Profit after tax slumped 84 per cent to RO 0.701 million for H1 2018, down from RO 4.624 million for the same period of last year.
Conrad Prabhu
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