Raysut Cement sets strategic plans for future growth

MUSCAT, JULY 16

Raysut Cement, a leading cement producer in Oman, has reported a significant reduction in losses for the first half of 2023. The company recorded a loss of RO 1.742 million, versus a loss of RO 5.3 million in the same period last year.

This positive development can be attributed to Raysut Cement's implementation of strategic measures to enhance operational efficiency, reduce costs, and boost sales volumes. The company is optimistic that this positive trend will continue throughout the second half of 2023.

In a recent update to its shareholders, Raysut Cement Company SAOG highlighted the latest advancements and strategic initiatives aimed at ensuring the long-term sustainability and growth of the organization. The company has engaged an independent technical consultant to conduct a comprehensive audit of its Raysut plant.

Simultaneously, the management team is actively finalizing a robust turnaround plan. Expected to be completed within the next three months, the plan will be reviewed by an independent expert and the company's Board of Directors. Shareholders will be actively involved in the discussion and approval process during an upcoming Extraordinary General Meeting (EGM).

Recognizing the need for additional capital to successfully execute the anticipated turnaround plan, Raysut Cement's Board of Directors plans to seek shareholder approval for the required capital injection through an EGM. To ensure uninterrupted operations during the transition period, the company is actively pursuing a bridging loan as a short-term financial arrangement until the long-term capital raising process is finalized.

Upon assuming their roles, the newly appointed Board of Directors have been implementing corrective measures to address the company's challenges. These measures include stringent adherence to corporate governance principles, approval of a Delegation of Authority Matrix, reinforcement of internal controls, strengthening of the internal audit and audit committee, meticulous monitoring of financial systems, cost optimization initiatives, and a thorough review of subsidiary performance to achieve financial independence.

To protect shareholder value, Raysut Cement has also engaged the expertise of a renowned international firm to conduct a comprehensive forensic investigation.