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FINANCIAL NEWS
Oman Cement gets $19b gov’t compensation
15 Jun 2010
(MENAFN) Oman Cement Company announced raising its profit outlook, after receiving $19 million in government compensation, Reuters reported.
The government paid the company $19.06 million as a compensation for keeping cement prices low on the directive of the ministry of finance.
Oman Cement said in a statement that this compensation will have the effect of improving the profitability of the firm during the current quarter and the year ending 31st December 2010.
Oman Cement posted a 30.1 percent profit decline in 2008 to $32.4 million, but made $63 million net profit in 2009.
The Finance Ministry has asked Oman Cement to keep prices down in order to sustain the economy and keep projects going. Last year, Oman invested more than $16 billion to build infrastructure including work on three airports, two ports, power plants, hospitals and roads.
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