Oman Cement Co has recorded a 36.7% rise in its net profit from $45.5m (OMR 17.5m) to $33.2m (OMR 12.8m) for the year 2012, according to a company disclosure to the Muscat Securities Market.

Total revenue rose 17% to $154m (OMR 59.3m) in 2012 from $131.7m (OMR 50.7m) in 2011. However, total expenditure also rose in 2012 by 9.4% to $102.8m (OMR 39.6m) from $94m (OMR 36.2m) in 2011.

According to Muscat Daily, Sameer Kattiparambil, AVP of research at EFG-Hermes, said: “The growth in net profit is mostly volume driven with some recovery in local cement prices. Owing to the fact that no major extra cement is being imported, prices have stabilised in the market over the last quarters.”

Although there will be good demand for cement in 2013 due to government spending on infrastructure projects and increased construction activity, analysts expect no increase in imports. Cement producers in the sultanate have faced tough competition over the last few years from UAE suppliers who sell cement in large quantities at lower prices in Oman.

“Since export prices have gone up, there has not been much addition to the profits of UAE exporters. Imports will continue to a limited extent but there will be no major increase. Oman Cement is working up to 96% of its capacity, so in the future, there is not much room for volume-driven growth,” Kattiparambil added.