Raysut Cement Reduces H1 2025 Losses: Implications for Investors and Business Growth in Oman
MUSCAT, JULY 15 — Raysut Cement Company SAOG, Oman’s largest cement producer, has reported a consolidated net loss of RO 2.99 million for the first half of 2025, an increase from a loss of RO 1.51 million during the same period last year. This comes despite a significant rise in revenues as the company implements a turnaround strategy under new leadership.
Total group revenue increased by 30.8% year-on-year, reaching RO 41.81 million for the six months ending June 30, 2025, compared to RO 31.87 million in the previous year. This growth was fueled by enhanced sales in both domestic and export markets, particularly in Yemen, the Maldives, and East Africa.
However, total group expenses surged to RO 36.44 million, up from RO 23.44 million in the first half of 2024, marking a 55.5% annual increase. This rise reflects heightened input costs and logistical challenges.
The loss before tax narrowed to RO 2.90 million, compared to RO 1.37 million in the previous year. After accounting for tax provisions of RO 90,042, the company reported a net loss of RO 2.99 million for the period.
On a standalone basis, the parent company generated RO 21.58 million in revenue, a 25.5% increase from RO 17.16 million in H1 2024. However, standalone losses expanded to RO 3.33 million, up from RO 2.48 million, primarily due to rising operating costs.
These results follow the release of the company’s 2024 Board of Directors Report, which disclosed a full-year consolidated net loss of RO 10.63 million and cumulative group losses of RO 24.06 million over 2023 and 2024. Nevertheless, group net cash flow was positive at RO 1.07 million for 2024, and total assets stood at RO 9.49 million by year-end.
A newly appointed board in March 2025, which did not oversee operations in 2024, has initiated a five-point restructuring plan aimed at restoring profitability by 2026. This strategy emphasizes addressing legacy debt, streamlining operations, enhancing efficiency, enforcing corporate governance, and improving liquidity management.
In 2024, group-wide cement sales reached 2.47 million metric tonnes, an increase from 2.14 million tonnes the previous year. The parent company’s exports also rose to 1.29 million tonnes, with domestic sales climbing to 0.65 million tonnes.
Despite these improvements, the company continues to grapple with industry-wide challenges, including regional cement overcapacity, currency risks in key markets, and competition from Asian producers. The Board remains committed to executing its recovery plan and enhancing transparency for shareholders.
Special Analysis by Omanet | Navigate Oman’s Market
Raysut Cement Company’s recent financial results indicate a clear upward trend in revenues, which suggests opportunities for growth in the local cement market. However, the persistent operational losses and increased costs highlight the urgent need for strategic adjustments to maintain competitiveness amid regional challenges. Investors and entrepreneurs should closely monitor the implementation of the company’s restructuring plan and consider potential partnerships or innovations that address these cost pressures and enhance market share.
