Raysut Cement Returns to Profit Amid Gas Fee Concerns: What It Means for Investors and Business Owners in Oman
MUSCAT, MAY 22 – Raysut Cement Company SAOG has returned to profitability in the first quarter of 2026 after experiencing a prolonged period of financial difficulties. However, the company cautioned that significant gas-related liabilities and ongoing liquidity challenges raise substantial doubts about its ability to continue operations.
According to financial disclosures submitted to the Muscat Stock Exchange, Raysut Cement reported a net profit of RO 1.45 million for the quarter ending March 31, 2026, a marked improvement from previous losses. This turnaround was driven by a 25% year-on-year increase in sales, attributed to enhanced pricing strategies, customer base expansion, and rigorous control of operational costs.
Despite this progress, the company’s accumulated losses remain considerable, reaching RO 64.98 million at the group level and RO 69.14 million for the parent company. Additionally, net current liabilities stand at approximately RO 74.86 million, with shareholders’ equity at the parent company level completely eroded.
The company’s financial statements highlight a material uncertainty regarding its ability to continue as a going concern. A key concern is the outstanding debt related to gas supplies, with overdue payments to its principal gas supplier amounting to RO 44 million as of March 2026, alongside other payables totaling RO 13 million.
Raysut Cement emphasized that uninterrupted gas supply is critical to maintaining operations at its Salalah plant, yet no final settlement agreement has been reached with the supplier. There is a risk that the supplier might demand immediate repayment, which could further strain cash flows and necessitate additional support from shareholders.
To address these challenges, the board is advancing a capital restoration plan under Oman’s Commercial Companies Law, alongside a proposed shareholder loan aimed at improving liquidity, settling legacy payables, and funding necessary maintenance capital expenditures. This funding plan remains subject to shareholder approval and regulatory clearance.
Raysut Cement has been undergoing restructuring since 2022, following the Financial Services Authority’s decision to dissolve the company’s previous board due to fraud-related issues linked to former management and appoint a temporary board.
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Raysut Cement’s return to profitability is a positive sign for Oman’s industrial sector, yet its massive gas-related liabilities and liquidity challenges present significant operational risks. Businesses and investors should closely monitor the company’s capital restoration efforts and gas supply negotiations, as successful resolution could unlock recovery opportunities, while failure to do so may exacerbate financial instability. Smart investors must weigh the potential for turnaround against the persistent uncertainty and the need for strong shareholder support.
