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FINANCIAL NEWS
Oman’s industrial profits down on high gas prices
27 Jul 2015
(MENAFN) Financial results announced by Omani industries in the first half of the year show an overall profit loss, dragged down by high gas prices which have led to higher costs of production, Oman Observer reported.
The two main cement producers, Raysut Cement and Oman Cement, said production costs increased dramatically under the new price scheme. Oman Cement’s total expenses rose 8.2 percent in the first half.
According to analysts, the increase of gas tariffs has been part of a response from the authorities to bridge some of the gap in the national budget left by weaker hydrocarbons revenue.
“Decline in topline growth owing to realization pressures and cost escalation as a result of natural gas price hike has impacted the profit margins in the first half,” Research Head at Al Maha Financial Services said.
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