Half Year 2026 Oman Cement Co SAOG Earnings Call

August 12, 2026

Ghada Al Zajali: Good morning, audience. Can you please confirm that you can hear us?

Ghada Al Zadjali: Good morning, audience. Can you please confirm that you can hear us?

Speaker #1: Good morning, audience. Can you please confirm that you can hear us?

Speaker #2: Yes, it's loud in here.

Abdullah Al Sayabi: Yes, we can.

[Unknown Speaker]: Yes, we can.

Speaker #1: Oman Cement Company, we'd like to warmly welcome our distinguished shareholders and investors, financial analysts, and all attendees to the discussion on the company's unofficial financials for the 6-month period ended 30 June 2026, which were disclosed on the MSX website on 28 July 2026.

Ghada Al Zajali: Oman Cement Company would like to warmly welcome our distinguished shareholders, investors, financial analysts, and all attendees to the discussion on the company's unaudited financials for the six-month period ended 30 June 2026, of which were disclosed on the MSX website on 28 July 2026. Allow me to introduce our management. Myself here, Ghada Al Zajali, Finance Business Partner. Mr. Fati Al Balushi, Chief Financial Officer.

Ghada Al Zadjali: Oman Cement Company would like to warmly welcome our distinguished shareholders, investors, financial analysts, and all attendees to the discussion on the company's unaudited financials for the six-month period ended 30 June 2026, of which were disclosed on the MSX website on 28 July 2026. Allow me to introduce our management. Myself here, Ghada Al Zadjali, Finance Business Partner. Mr. Fatick Al Balushi, Chief Financial Officer.

Speaker #1: Allow me to introduce our management: myself, Raedil Dajjali, Finance Business Partner, and Mr. Fatih Kerbedushi, Chief Financial Officer.

Speaker #3: Salaam.

Speaker #1: Mr. Manesh, Financial Controller; Mr. Ehsan, Assistant Finance Controller; and Mr. Abdallah, Investor Relationship Manager. Allow me to give the mic to Mr. Abdallah to proceed with the discussion session.

Abdullah Al Sayabi: Sir.

Fatick Al Balushi: [Foreign language]

Ghada Al Zajali: Mr. Manish, Financial Controller. Mr. Ehsan, Assistant Finance Controller, and Mr. Abdullah, Investor Relationship Manager. Allow me to give the mic to Mr. Abdullah to proceed with the discussion session.

Ghada Al Zadjali: Mr. Manish, Financial Controller. Mr. Ehsan, Assistant Finance Controller, and Mr. Abdullah, Investor Relationship Manager. Allow me to give the mic to Mr. Abdullah to proceed with the discussion session.

Abdullah Al Sayabi: Hello. Assalamualaikum warahmatullahi wabarakatuh. Good morning, and welcome to Oman Cement H1 2026 MSX discussion meeting. Investors, shareholders, portfolio managers, and everyone interested in Oman Cement, thank you all for joining us today. Today, we would like to share with you our financial results for H1 2026 and give you updated results on our business performance. We also look forward to having an open discussion and answering your questions. We will go with the disclaimer. Before we start, just a quick note on the disclaimer. As you are aware, this information presented today is for general information purpose. This presentation should not be considered as investment or financial advice, and we encourage everyone to make their own assessment. We will go to next agenda. The agenda of this meeting.

Abdullah Al Siyabi: Hello. Assalamualaikum warahmatullahi wabarakatuh. Good morning, and welcome to Oman Cement H1 2026 MSX discussion meeting. Investors, shareholders, portfolio managers, and everyone interested in Oman Cement, thank you all for joining us today. Today, we would like to share with you our financial results for H1 2026 and give you updated results on our business performance. We also look forward to having an open discussion and answering your questions. We will go with the disclaimer. Before we start, just a quick note on the disclaimer. As you are aware, this information presented today is for general information purpose. This presentation should not be considered as investment or financial advice, and we encourage everyone to make their own assessment. We will go to next agenda. The agenda of this meeting.

Speaker #3: So, go ahead.

Speaker #4: Salaam alaykum. Bismillahirrahmanirrahim. Good morning, and welcome to the Oman Cement first half of 2026 MSX discussion meeting. Investors, shareholders, portfolio managers, and everyone interested in Oman Cement, thank you.

Speaker #4: Thank you all for joining us today. Today, we would like to share with you our financial results for the first half of 2026 and give you updated results on our business performance.

Speaker #4: We also look forward to having an open discussion and answering your questions. We will go with the disclaimer. Before we start, just a quick note on the disclaimer.

Speaker #4: As you're aware, the information presented today is for general information purposes only. This presentation should not be considered as investment or financial advice.

Speaker #4: And we encourage everyone to make their own assessment. Okay? We'll go to the next agenda. The agenda of this meeting: First, we will start with a brief introduction about Oman Cement Company and the company's current position.

Abdullah Al Sayabi: First, we will start with a brief introduction about Oman Cement Company and the company current position. Then we will present the H1 2026 financial highlights, including the main financial results and key changes compared to the same period of last year, 2025. After that, we will have a Q&A session. We will be happy to answer your questions and discuss any points you may have. Finally, we will share our contacts for any further communication. Next.

Abdullah Al Siyabi: First, we will start with a brief introduction about Oman Cement Company and the company current position. Then we will present the H1 2026 financial highlights, including the main financial results and key changes compared to the same period of last year, 2025. After that, we will have a Q&A session. We will be happy to answer your questions and discuss any points you may have. Finally, we will share our contacts for any further communication. Next.

Speaker #4: Then, we will present the half year (H1) 2026 financial highlights, including the main financial results and key changes compared to the same period last year, 2025.

Speaker #4: After that, we will have a Q&A session. We will be happy to answer your questions and discuss any points you may have.

Speaker #4: Finally, we will share our contacts for any further communication. Thanks.

Ghada Al Zajali: Allow me to also introduce and welcome Mr. Jiang Tao, Acting CEO of the company, who has joined the meeting.

Ghada Al Zadjali: Allow me to also introduce and welcome Mr. Jiang Tao, Acting CEO of the company, who has joined the meeting.

Speaker #1: Allow me to also introduce and welcome Mr. Jing Tao, Acting CEO of the company, who has joined the meeting.

Speaker #3: Salaam alaykum.

Abdullah Al Sayabi: Assalamualaikum. Oh, he can see us or he cannot? Better they can see, I think. Because camera is not on. Are you-

Jiang Tao: Assalamualaikum.

Speaker #4: Hold on. Can we see ourselves or not?

Fatick Al Balushi: Oh, he can see us or he cannot?

Abdullah Al Siyabi: Better they can see, I think.

Speaker #3: Raedil, you can see.

Fatick Al Balushi: Because camera is not on. Are you-

Speaker #4: Because the camera is not on. Are you—

Ghada Al Zajali: The camera is on.

Ghada Al Zadjali: The camera is on.

Speaker #2: Camera is on.

Speaker #4: Okay.

Speaker #3: Okay, salaam alaykum. Good morning, everyone. Sorry for this, missed out—the camera was switched off. Now we are all in. We'll reintroduce ourselves again.

Abdullah Al Sayabi: Okay. Assalamualaikum. Good morning, everyone. Sorry for this missed out. The camera was switched off. Now we are all in. We will reintroduce ourself again. Ghada, please.

Jiang Tao: Okay. Assalamualaikum. Good morning, everyone.

Fatick Al Balushi: Sorry for this missed out. The camera was switched off. Now we are all in. We will reintroduce ourself again. Ghada, please.

Speaker #3: Raedil, please.

Speaker #1: Allow me, please, to introduce the Oman Cement management team who have attended this session. Myself, Raedil Dajjali, Finance Business Partner, and Mr. Jing Tao, Acting CEO of the company.

Ghada Al Zajali: Allow me to please introduce the Oman Cement management team who has attended this session. Myself here, Ghada Al Zajali, Finance Business Partner. Mr. Jing Tao, acting CEO of the company. Mr. Fati Al Balushi.

Ghada Al Zadjali: Allow me to please introduce the Oman Cement management team who has attended this session. Myself here, Ghada Al Zadjali, Finance Business Partner. Mr. Jing Tao, acting CEO of the company. Mr. Fatick Al Balushi.

Speaker #1: Mr. Fatih Kerbedushi, Chief Financial Officer; Mr. Manesh, Financial Controller; Mr. Ehsan, Assistant Finance Controller; and Mr. Abdallah Syabi, Investor Relationship Manager, who will guide the session.

Abdullah Al Sayabi: Hello

Fatick Al Balushi: Hello

Ghada Al Zajali: Chief Financial Officer. Mr. Manish, Financial Controller. Mr. Ehsan, the Assistant Finance Controller, and Mr. Abdullah Sayabi, Investor Relationship Manager, who will guide the session.

Ghada Al Zadjali: Chief Financial Officer. Mr. Manish, Financial Controller. Mr. Ehsan, the Assistant Finance Controller, and Mr. Abdullah Sayabi, Investor Relationship Manager, who will guide the session.

Speaker #3: Hello. I'm Abdallah.

Abdullah Al Sayabi: Hello, Abdullah. No, it was. Yes. Overview of Oman Cement Company. We are one of the leading cement company in Oman with a strong focus on quality, our customers, shareholders, and add value on local community. We also aim to support the growth of the construction sector in line with Oman Vision 2040. Next. Okay. Moving to our H1 2026 performance. We are pleased to see the strong improvement compared to H1 2025. As you see, cement sales increased by 7.9% and clinker sales increased by 141%, while the revenue increased by 14.9%. EBITDA increased by 28.3% and net profit increased by 41%. Next. Looking at our production and sales volume, we achieved a good growth during H1 2026. Clinker production increased by 2.7%, while cement production increased by 9.4%.

Jiang Tao: Hello, Abdullah.

Speaker #4: No, if, before this one. Yeah. Overview of our Oman Cement Company. We are one of the leading cement companies in Oman. With a strong focus on quality, our customers, shareholders, and add value to the local community.

Fatick Al Balushi: No, it was. Yes.

Abdullah Al Siyabi: Overview of Oman Cement Company. We are one of the leading cement company in Oman with a strong focus on quality, our customers, shareholders, and add value on local community. We also aim to support the growth of the construction sector in line with Oman Vision 2040. Next. Okay. Moving to our H1 2026 performance. We are pleased to see the strong improvement compared to H1 2025. As you see, cement sales increased by 7.9% and clinker sales increased by 141%, while the revenue increased by 14.9%. EBITDA increased by 28.3% and net profit increased by 41%. Next. Looking at our production and sales volume, we achieved a good growth during H1 2026. Clinker production increased by 2.7%, while cement production increased by 9.4%.

Speaker #4: We also aim to support the growth of the construction sector in line with Oman's Vision 2040. Next. Okay, moving to our H1 2026 performance.

Speaker #4: We are pleased to see the strong improvement compared to H1 2025. As you see, cement sales increased by 7.9% and clinker sales increased by 141%.

Speaker #4: While the, revenue increased by 14.9 percentage. EBITDA, increased by 28.3 percentage and net profit increased by 41 percentage. Next. Yeah. looking at our production, and sales vol sales volume, we achieved a good growth during H1 2026.

Speaker #4: Clinker production increased by 2.7 percent, while cement production increased by 9.4 percent. Also, cement sales increased by 7.9 percent, which is 7.6 percent above our budget.

Abdullah Al Sayabi: Also, cement sales increased by 7.9%, which is 7.6% above our budget and our target of 2026. Next. In terms of performance over the last six years, in H1 2026, we achieved our highest EBITDA, reaching OMR 11.7 million. Net profit also increased strongly to OMR 6.7 million compared to OMR 4.7 million last year, H1 2025.

Abdullah Al Siyabi: Also, cement sales increased by 7.9%, which is 7.6% above our budget and our target of 2026. Next. In terms of performance over the last six years, in H1 2026, we achieved our highest EBITDA, reaching OMR 11.7 million. Net profit also increased strongly to OMR 6.7 million compared to OMR 4.7 million last year, H1 2025.

Speaker #4: And our target of 2026. Next, in terms of performance over the last 6 years, in H1 2026 we achieved our highest EBITDA, reaching OMR 11.7 million.

Speaker #4: Net profit also increased strongly to OMR 6.7 million, compared to OMR 4.7 million last year, H1 2025.

Speaker #3: I want to continue. I want to continue.

Fati Hussain Al Balushi: Inshallah to continue.

Fatick Al Balushi: Inshallah to continue.

Abdullah Al Sayabi: Sorry?

Abdullah Al Siyabi: Sorry?

Fati Hussain Al Balushi: Inshallah to continue.

Fatick Al Balushi: Inshallah to continue.

Abdullah Al Sayabi: To continue. Thank you. Next. In terms of our performance over the past years, which is more important now, our EBITDA margin reached 30.2%, which is the highest margin shown in this period. It is showing in the slides. Next. Market share. In terms of performance of Oman Cement shares on the MSX, the share price shown a clear improvement over the last 3 years. The closing price increased from around 310 baisa in 2022 and 2023 to around 500 baisa at the end of 2025. The share price as on 11 August, yesterday, around 580 baisa per share. With that, next. With that, we conclude our presentation for H1 2026. Thank you for your time and attention. We are now happy to take your questions. We will discuss your points, Mr. Rintoul and Mr. Fatiq.

Fatick Al Balushi: To continue.

Speaker #4: I want to continue. Thank you. Next. Yeah. In terms of our performance over the past years, which is more important now, our EBITDA margin reached 30.2 percent, which is the highest margin shown in this period.

Abdullah Al Siyabi: Thank you. Next. In terms of our performance over the past years, which is more important now, our EBITDA margin reached 30.2%, which is the highest margin shown in this period. It is showing in the slides. Next. Market share. In terms of performance of Oman Cement shares on the MSX, the share price shown a clear improvement over the last 3 years. The closing price increased from around 310 baisa in 2022 and 2023 to around 500 baisa at the end of 2025. The share price as on 11 August, yesterday, around 580 baisa per share. With that, next. With that, we conclude our presentation for H1 2026. Thank you for your time and attention. We are now happy to take your questions. We will discuss your points, Mr. Rintoul and Mr. Fatiq.

Speaker #4: That's as it's showing in the slides. Next. Yeah. Market share. In terms of the performance of Oman Cement shares on the MSX, the share price has shown a clear improvement over the last 3 years.

Speaker #4: The closing price increased from around 310 baisa in 2022 and 2023 to around 500 baisa at the end of 2025. And the share price, as of yesterday, 11 August, was around 580 baisa per share.

Speaker #4: with that, next. Yeah. With that, we conclude our presentation for, H1 2026. And thank you for your time and, and attention. We now we are now, happy to take your, presen your questions and we will discuss your points.

Speaker #4: Mr. Jing Tao and Mr. Fatih, we'll attend to your questions. The floor is yours.

Fati Hussain Al Balushi: Thank you, Abdul.

Fatick Al Balushi: Thank you, Abdul.

Abdullah Al Sayabi: We will attend your questions, and the floor is yours.

Abdullah Al Siyabi: We will attend your questions, and the floor is yours.

Speaker #3: Thank you, Abdallah.

Fati Hussain Al Balushi: Thank you, Abdul.

Fatick Al Balushi: Thank you, Abdul.

Speaker #4: Thank you. Raedil.

Abdullah Al Sayabi: Thank you.

Jiang Tao: Thank you.

Fati Hussain Al Balushi: Fatiq?

Fatick Al Balushi: Fatiq?

Speaker #1: Yes, audience, any questions? Please do raise them. We have a question from Rao. Please.

Ghada Al Zajali: Yes. Audience, any questions, please do raise them. We have a question from Rao. Please.

Ghada Al Zadjali: Yes. Audience, any questions, please do raise them. We have a question from Rao. Please.

Rao Amirali: Hello, can you hear me?

Rao Aamir Ali: Hello, can you hear me?

Speaker #4: hello. Can you hear me?

Speaker #1: Yes, we do.

Ghada Al Zajali: Yes, we do.

Ghada Al Zadjali: Yes, we do.

Rao Amirali: Yes. Thank you. Thank you for detailed presentation. My name is Rao Amirali, and I am investment analyst at Ubhar Capital. I have few question. You have mentioned in your slides that the revenue has grown by 14.9% compared to volumetric sales of 7.9%. Is this mainly because of higher prices? If you also put light that what was the effective prices during this period, and is this because of going geopolitical situation in the region?

Rao Aamir Ali: Yes. Thank you. Thank you for detailed presentation. My name is Rao Amirali, and I am investment analyst at Ubhar Capital. I have few question. You have mentioned in your slides that the revenue has grown by 14.9% compared to volumetric sales of 7.9%. Is this mainly because of higher prices? If you also put light that what was the effective prices during this period, and is this because of going geopolitical situation in the region?

Speaker #4: Yes, thank you. Thank you for the detailed presentation. My name is Rao Amirali and I am an Investment Analyst at Ubhar Capital. I have a few questions. You have mentioned in your slides that the revenue has grown by 14.9%, compared to volumetric sales of 7.9%.

Speaker #4: Is this mainly because of higher prices? And could you also shed some light on what were the effective prices during this period? And is this due to the ongoing geopolitical situation in the region?

Speaker #1: Yeah.

Speaker #3: Thank you, Rao. You just mentioned one significant portion of the adjustment to the revenue, which is the price adjustment. This is a multifactorial contribution. One is the escalated cost, which has been quite evident since 2015, then growing year on year, either due to the organic, consistent, and constant percentage of increase on the natural gas, the manpower, and other inflation, and the leasing cost.

Fati Hussain Al Balushi: Thank you, Rao. You've just assumed one significant portion of the adjustment to the revenue is a price adjustment, which is of multifactorial contribution from. One is the escalated cost, which has been quite carrying since 2015 and growing year-on-year, either to the organic, consistent and constant percentage of increase on the natural gas and the manpower and other inflation and the leasing costs. Also to reasonably have this kind of shareholders and stakeholders value maintained at the best level by maximizing the profit. So adjusting wherever we have been not being able to really retain market, taking a bit of, I would call, temporary advantage. That's a lasting advantage for the price to stay for the future, mainly to make sure that the company stays positive and stands right for the shareholders and be quite investing into growth.

Fatick Al Balushi: Thank you, Rao. You've just assumed one significant portion of the adjustment to the revenue is a price adjustment, which is of multifactorial contribution from. One is the escalated cost, which has been quite carrying since 2015 and growing year-on-year, either to the organic, consistent and constant percentage of increase on the natural gas and the manpower and other inflation and the leasing costs. Also to reasonably have this kind of shareholders and stakeholders value maintained at the best level by maximizing the profit. So adjusting wherever we have been not being able to really retain market, taking a bit of, I would call, temporary advantage. That's a lasting advantage for the price to stay for the future, mainly to make sure that the company stays positive and stands right for the shareholders and be quite investing into growth.

Speaker #3: And also, to reasonably have this kind of shareholder and stakeholder value maintained at the best level, by maximizing the profit. So, adjusting wherever we have not been able to really retain market—taking a bit of, I would call, temporary advantage—but that's a lasting advantage for the price to stay.

Speaker #3: For the future, mainly to make sure that the company stays positive and stays right for the shareholders, and be quite invested into growth. Because also, for our forward story, we would need to balance specific surplus cash, sitting into those capex for the development, which we can highlight in subsequent periods once we are also getting this kind of clear approval from the board.

Fati Hussain Al Balushi: Because also for our forward story, we would need to balance specific surplus cash sitting into those CapEx for the development, which we can highlight subsequent period once we are also getting this kind of clear approval from the board. Clear, Rao? Any other question? Maybe I add to that, proportionally, there is some kind of volume comparative increase to the previous period of 2025 H1, which has contributed to that element as well. Because we've been quite aggressive to retain our market share and be the preferred partner. Prefer quality branded partner who is not just supporting the market and the end users on the sales or producing and providing of cement, but also on partner of advice, service, and whatsoever we can help.

Fatick Al Balushi: Because also for our forward story, we would need to balance specific surplus cash sitting into those CapEx for the development, which we can highlight subsequent period once we are also getting this kind of clear approval from the board. Clear, Rao? Any other question?

Speaker #3: Clear, Rao? Any other questions? And maybe I’ll add to that: proportionally, there is some kind of volume—comparative increase to the previous period of 2025 H1—which has contributed to that element as well.

Jiang Tao: Maybe I add to that, proportionally, there is some kind of volume comparative increase to the previous period of 2025 H1, which has contributed to that element as well. Because we've been quite aggressive to retain our market share and be the preferred partner. Prefer quality branded partner who is not just supporting the market and the end users on the sales or producing and providing of cement, but also on partner of advice, service, and whatsoever we can help.

Speaker #3: Because we’ve been quite aggressive to retain our market share, and be the preferred partner—preferred quality branded partner—who is not just supporting them, the market, and the end users in the sales or production and providing of cement, but also as a partner in advice, service, and whatsoever we can help with.

Rao Amirali: I have couple of other question, if you allow me.

Rao Aamir Ali: I have couple of other question, if you allow me.

Speaker #4: I have a couple—I have a couple of other questions, if you allow me.

Speaker #3: Yes.

Fati Hussain Al Balushi: Yes.

Jiang Tao: Yes.

Speaker #4: Yes, my second question is about the gross margin during the second quarter of 2026, which was 22.7 percent compared to 28 percent in the first quarter.

Rao Amirali: Yes. My second question is about the gross margin during Q2 2026, which was 22.7% compared to 28% in Q1. Why such a decline on quarter-on-quarter basis? What was the effective prices during Q1 and Q2, if you can?

Rao Aamir Ali: Yes. My second question is about the gross margin during Q2 2026, which was 22.7% compared to 28% in Q1. Why such a decline on quarter-on-quarter basis? What was the effective prices during Q1 and Q2, if you can?

Speaker #4: So, why such a decline on a quarter-on-quarter basis? And what were the effective prices during the first quarter and second quarter, if you can?

Fati Hussain Al Balushi: Go ahead, Alain.

Jiang Tao: Go ahead, Alain.

Speaker #3: Go ahead.

Jiang Tao: Okay.

Ghada Al Zadjali: Okay.

Speaker #1: Okay.

Fati Hussain Al Balushi: You are referring to a decline?

Speaker #3: So, you are referring to a decline? Did you come back to the question?

Fatick Al Balushi: You are referring to a decline?

Rao Amirali: Yes.

Rao Aamir Ali: Yes.

Fati Hussain Al Balushi: Can you come back on the question?

Fatick Al Balushi: Can you come back on the question?

Speaker #4: Yes, in the second quarter, in 2026, the gross... Yes.

Rao Amirali: Yes. In Q2, in 2026.

Rao Aamir Ali: Yes. In Q2, in 2026.

Fati Hussain Al Balushi: Okay.

Fatick Al Balushi: Okay.

Rao Amirali: the gross.

Rao Aamir Ali: the gross.

Fati Hussain Al Balushi: Yes. Interim period?

Fatick Al Balushi: Yes. Interim period?

Speaker #3: Intercom, please.

Speaker #4: Yes, intercom.

Rao Amirali: Yes, interim period.

Rao Aamir Ali: Yes, interim period.

Speaker #3: Yes, please, Rao.

Fati Hussain Al Balushi: Sorry. Rao?

Fatick Al Balushi: Sorry. Rao?

Speaker #4: Rao?

Speaker #1: Rao?

Speaker #4: Yes, yes. No, I was asking about the gross margin in the second quarter. This is the first half of 2026. Gross margin in the second quarter has declined compared to the first quarter.

Jiang Tao: Rao?

Rao Amirali: Yes, yes. I was asking about the gross margin in Q2. This is H1 2026. Gross margin Q2 has declined compared to Q1. My question is why in Q2 gross margin has declined?

Rao Aamir Ali: Yes, yes. I was asking about the gross margin in Q2. This is H1 2026. Gross margin Q2 has declined compared to Q1. My question is why in Q2 gross margin has declined?

Speaker #4: So my question is, why has the gross margin declined in the second quarter?

Fati Hussain Al Balushi: Let me just look into this and I can come back to you, please.

Fatick Al Balushi: Let me just look into this and I can come back to you, please.

Speaker #3: Let me just look into this and I’ll come back to you, please. The team is checking and I’ll come back to you.

Rao Amirali: Okay.

Rao Aamir Ali: Okay.

Fati Hussain Al Balushi: The team is keeping and I will come back to you.

Fatick Al Balushi: The team is keeping and I will come back to you.

Speaker #4: Yeah, Mr. Rao, that I can give you yeah, I can give you some reason that, because our sweep here that have a short-term maintenance shutdown maintenance during at the end of March and also at the beginning of the April.

Jiang Tao: Yeah. Mr. Rao, I can give you some reason that, because our sweep here that have a short-term maintenance, a shutdown maintenance at the end of March and also at the beginning of April, so increase some cost. Also, because the electrical cost from May, June, the price is almost double or triple compared with January to March. Yeah.

Speaker #4: So, this increased some costs. And also, because of the electrical cost from May and June, the price is almost double or triple compared with January to March.

Speaker #4: Yeah.

Speaker #3: Additionally, also, we've seen that due to the geopolitical tension, many of those existing contracts or supplies, which are landing in Q2, have asked for adjustments for the escalation in freight and transportation costs. We have to be quite balanced in our approach, whether we take partial or full adjustments, in order to support the ongoing operation and ensure no disruption to the supply to the market.

Fati Hussain Al Balushi: Additionally, also we have seen that due to the geopolitical tension, many of those existing contracts or supply which are landed in Q2 have asked adjustments for the escalation in the freight and transportation cost, which we have to be quite balancing in the approach whether we take partial or whole in order to support the ongoing operation and no disruption to the supply to the market.

Fatick Al Balushi: Additionally, also we have seen that due to the geopolitical tension, many of those existing contracts or supply which are landed in Q2 have asked adjustments for the escalation in the freight and transportation cost, which we have to be quite balancing in the approach whether we take partial or whole in order to support the ongoing operation and no disruption to the supply to the market.

Jiang Tao: Yeah.

Speaker #3: Thank you.

Rao Amirali: Thank you.

Rao Aamir Ali: Thank you.

Fati Hussain Al Balushi: Clear?

Fatick Al Balushi: Clear?

Speaker #4: Thank you. Thank you. Thank you. Yes, yes. If you allow me, please. So, my question is about the Oman cement market. What is the size of the Oman cement market?

Rao Amirali: Thank you. Thank you.

Rao Aamir Ali: Thank you. Thank you.

Fati Hussain Al Balushi: Any more question?

Fatick Al Balushi: Any more question?

Rao Amirali: Yes, yes. If you allow me, please. My question is about the Oman Cement market. What is the size of Oman Cement market and what is locally produced and how much is imported? If you also tell us from which destination it is imported.

Rao Aamir Ali: Yes, yes. If you allow me, please. My question is about the Oman Cement market. What is the size of Oman Cement market and what is locally produced and how much is imported? If you also tell us from which destination it is imported.

Speaker #4: And, and what is locally produced, and how much is imported? Also, could you tell us from which destinations it is imported?

Speaker #3: We are not importing from outside. If you are saying importing, we are covering almost 80 percent of the northern market, mostly concentrated in Muscat and Muscat peripheries.

Fati Hussain Al Balushi: We are not importing from outside, if you are saying importing. We are covering almost 80% of the northern market in a most concentrated to Muscat and Muscat peripheries, where we also support, not just, I would call it indirectly, but directly supplying clinker to those grinding station in the north to be able to suffice the demand in the market. We started selling the clinker to Raysut Cement, Sohar grinding station. We start selling to Al Madina Cement, and in 2025, we sold also to Al Arabia Cement. So we are balancing this market to be quite standing sufficient for the demand. Unless there is a huge excessive growth and infrastructure projects goes big bang, then we invest into a more of a sizable expansion that will match the demand itself.

Fatick Al Balushi: We are not importing from outside, if you are saying importing. We are covering almost 80% of the northern market in a most concentrated to Muscat and Muscat peripheries, where we also support, not just, I would call it indirectly, but directly supplying clinker to those grinding station in the north to be able to suffice the demand in the market. We started selling the clinker to Raysut Cement, Sohar grinding station. We start selling to Al Madina Cement, and in 2025, we sold also to Al Arabia Cement. So we are balancing this market to be quite standing sufficient for the demand. Unless there is a huge excessive growth and infrastructure projects goes big bang, then we invest into a more of a sizable expansion that will match the demand itself.

Speaker #3: Where we also support, not just indirectly but directly, supplying clinker to those grinding stations in the north to be able to suffice the demand in the market.

Speaker #3: We started selling the clinker to Reisut, Cement Sohar grinding station. We started selling to Al-Madina Cement, and later in 2025, we sold also to Arabia.

Speaker #3: So, we are balancing this market to be quite steady and sufficient for the demand. Unless there is a huge, excessive growth and infrastructure projects go big bang, then we invest into a more sizable expansion that will match the demand itself.

Speaker #4: Yeah. And, also I think also related to your first question that, what are what about the performance? What's the reason of the performance in the first half year?

Jiang Tao: Yeah. Also, I think also related to your first question that, what about the performance? What is the reason of the performance in the H1? Also because after the modification last year, I think during July and August, we also did the modification of our Q3. So after that, our clinker capacity also increased.

Speaker #4: Also, also because that, after the modification last year, I think during the July and August, we also did the modification of our tier three.

Speaker #4: So after that, that our clinker cap, capacity also increased. Yeah, also improved. So even that the, after the war happened, started, that, the clinker and the cement from Iran, import is reduced.

Fati Hussain Al Balushi: Improved.

Fatick Al Balushi: Improved.

Jiang Tao: Yeah. Also improved. Even after the war happened, or started, the clinker and the cement from Iran import is reduced. Yeah. But also because of our clinker capacity, we can cover the demand of Oman.

Speaker #4: Yeah. But also that because of our clinker capacity, that we can cover the demand. From of the Oman. This is also the reason. And also even even like Mr. Farid said, even that the some grinding station in the northern area, lack of clinker is we also support some.

Fati Hussain Al Balushi: Yeah.

Fatick Al Balushi: Yeah.

Jiang Tao: This is also the reason. Also, even like Fatiq said, even some grinding station in the northern area, lack of clinker, we also support some to keep the supply and demand balance.

Speaker #4: To keep the supply and demand balanced.

Speaker #3: Yeah. And we have this commitment to maintain this kind of locally produced material, to be self-sufficient in the country. And hopefully, hopefully we'll be able to maintain this going by the plan on the strategic, fixed year for us, five-year plan to 2020, 2030 itself.

Fati Hussain Al Balushi: Yeah. We have this commitment to maintain this kind of local produced material to be self-sufficient in the country. Hopefully, we will be able to maintain this going by the plan on the strategy, sixth year for us, five-year plan to 2030 itself. Inshallah. With the collaborative support from all other producer, the Omani local ones.

Fatick Al Balushi: Yeah. We have this commitment to maintain this kind of local produced material to be self-sufficient in the country. Hopefully, we will be able to maintain this going by the plan on the strategy, sixth year for us, five-year plan to 2030 itself. Inshallah. With the collaborative support from all other producer, the Omani local ones.

Speaker #3: Inshallah, with the collaborative support from all other producers, including the Omani local ones.

Manish Jain: Understood.

Rao Aamir Ali: Understood.

Speaker #4: Understood. Understood. Understood. Yes. If you allow me,

Fati Hussain Al Balushi: Another?

Fatick Al Balushi: Another?

Rao Amirali: Yes, if you allow me.

Rao Aamir Ali: Yes, if you allow me.

Speaker #3: I think let's rotate with the other, then we'll come back to you, Rao, if you don't mind.

Fati Hussain Al Balushi: I think we'll let's rotate with the other, then we'll come back to you, Rao.

Fatick Al Balushi: I think we'll let's rotate with the other, then we'll come back to you, Rao.

Rao Amirali: Okay.

Rao Aamir Ali: Okay.

Rao Amirali: If you don't mind.

Fatick Al Balushi: If you don't mind.

Speaker #4: Okay. Okay. Sure, sure.

Rao Amirali: Okay. Sure.

Rao Aamir Ali: Okay. Sure.

Speaker #1: Yeah, we just have a question here in the chat box from Sakit. His question is: What has been the sales mix within the domestic and export markets?

Ghada Al Zajali: Yeah. We just have a question here in the chat box from Saket, and his question is: What has been the sales mix within domestic and export markets?

Ghada Al Zadjali: Yeah. We just have a question here in the chat box from Saket, and his question is: What has been the sales mix within domestic and export markets?

Speaker #3: For, for us, most probably I would say we are almost nearly claiming to be 100 percent local, except for a, a what maybe one product which is oil with cement, which we are exporting to the Iraq and some, African continent, continental countries.

Fati Hussain Al Balushi: For us, most probably, I would say we are almost nearly claiming to be 100% local, except for maybe one product, which is Oil Well Cement, which we are exporting to Iraq and some African continental countries. That range between 2% to 4% in all average range on the year.

Fatick Al Balushi: For us, most probably, I would say we are almost nearly claiming to be 100% local, except for maybe one product, which is Oil Well Cement, which we are exporting to Iraq and some African continental countries. That range between 2% to 4% in all average range on the year.

Speaker #3: And that range between two to four percent in all average range on the year. On one sorry? It's a so sorry, I need to correct that.

Fati Hussain Al Balushi: Yes.

Jiang Tao: Yes.

Fati Hussain Al Balushi: On one, sorry? Sorry, I need to correct that. It is 1% as of now, given the volume increase and the sales that we have achieved for H1. Right, Manish?

Fatick Al Balushi: On one, sorry? Sorry, I need to correct that. It is 1% as of now, given the volume increase and the sales that we have achieved for H1. Right, Manish?

Speaker #3: It's at one percent as of now, given the volume increase and the sales that we have achieved for each one, right, Manish? Thank you, Manish.

Manish Jain: Yes.

Fati Hussain Al Balushi: Thank you, Manish. It is around 1%, but previously, in the previous years, it was between 2% to 4%. We are focusing on the local sufficiencies to be created and consistently to maintain that kind of commitment delivered to the country. Yes, please, go ahead next.

Fatick Al Balushi: Thank you, Manish. It is around 1%, but previously, in the previous years, it was between 2% to 4%. We are focusing on the local sufficiencies to be created and consistently to maintain that kind of commitment delivered to the country. Yes, please, go ahead next.

Speaker #3: So it's around 1%, but previously, in previous years, it was between 2% to 4%. So we are focusing on the local sufficiency to be created and consistently maintaining that kind of commitment delivered to the country.

Speaker #3: Yes, please. Rada, next.

Ghada Al Zajali: Yes, Mr. Mana Thomas.

Ghada Al Zadjali: Yes, Mr. Mana Thomas.

Speaker #1: Yes. Mr. Mana, Thomas. Thomas, yes.

Mana Thomas: Yes, good morning. Thank you for the presentation. I have a few questions, if I can continue.

Manna Thomas: Yes, good morning. Thank you for the presentation. I have a few questions, if I can continue.

Speaker #2: Good morning. Thank you for the presentation. I have a few questions, if I may continue.

Speaker #1: Please do.

Ghada Al Zajali: Please do.

Ghada Al Zadjali: Please do.

Fati Hussain Al Balushi: Where are you coming from, Mana?

Fatick Al Balushi: Where are you coming from, Mana?

Speaker #3: Where, where are you coming from? Mana?

Speaker #2: United Securities.

Mana Thomas: United Securities.

Manna Thomas: United Securities.

Speaker #3: Yes, please.

Fati Hussain Al Balushi: Yes, please.

Fatick Al Balushi: Yes, please.

Speaker #2: Okay, so regarding the new greenfield plant in Dokkum, with the clinker capacity for 5,000 tons per day, what is its estimated total capex?

Mana Thomas: Okay. Regarding the new greenfield plant in Duqm, with the clinker capacity for 5,000 tonnes per day, what is its estimated total CapEx?

Manna Thomas: Okay. Regarding the new greenfield plant in Duqm, with the clinker capacity for 5,000 tonnes per day, what is its estimated total CapEx?

Speaker #3: Yeah. So, first of all, let us declare rightly: this is still on our radar, but not on the fast track to move now. It is part of a strategic expansion.

Fati Hussain Al Balushi: Well, first of all, let us declare lightly, this is still on our radar, but not on the fast track to move now, but on a strategic expansion. If you heard me earlier, we said if the excessive growth and big bang infrastructure demand happens, then immediately Oman Cement will go to that strategic push on the button. Assume that that 2023 budget, it was around the area of OMR 100 million roughly. In the range of $200 to $250 million. But given that now we are also inviting the competitive tenders, maybe we see it much more optimized in a better cost structure once we go to the market, if we decided soon to go. Mana, any other question?

Fatick Al Balushi: Well, first of all, let us declare lightly, this is still on our radar, but not on the fast track to move now, but on a strategic expansion. If you heard me earlier, we said if the excessive growth and big bang infrastructure demand happens, then immediately Oman Cement will go to that strategic push on the button. Assume that that 2023 budget, it was around the area of OMR 100 million roughly. In the range of $200 to $250 million. But given that now we are also inviting the competitive tenders, maybe we see it much more optimized in a better cost structure once we go to the market, if we decided soon to go. Mana, any other question?

Speaker #3: If you heard me earlier, we said if the excessive growth and big bang infrastructure demand happens, then immediately Oman Cement will go to that strategic push on the bottom.

Speaker #3: Assumed, assumed at that 2023 budget, it was around the area of 100 million riyals, roughly. So in the range of 200 to 250 million riyals, million dollars. But, given that now, we are also inviting the competitive tender.

Speaker #3: Maybe we see it much more optimized, with a better cost structure, once we go to the market—if we decide soon to go. Mana, any other questions?

Mana Thomas: Yes. If you are going for the, say, the new greenfield expansion, I just want to understand that would you be going for an additional debt? Given that your current balance sheet is not debt reliant, is that an option that you are considering?

Manna Thomas: Yes. If you are going for the, say, the new greenfield expansion, I just want to understand that would you be going for an additional debt? Given that your current balance sheet is not debt reliant, is that an option that you are considering?

Speaker #2: yes. I just so if you're going, for the same, the new, Greenfield expansion, I just want to understand that would you be going for an additional depth, so given that your current balance sheet is not, debt reliant, so would is that an option that you consider?

Speaker #3: Your voice was not coming through clearly. Could you please repeat that?

Fati Hussain Al Balushi: Sorry, your voice was not coming clear. If you repeat, please.

Fatick Al Balushi: Sorry, your voice was not coming clear. If you repeat, please.

Speaker #2: No, would you—I just want to understand if you would be going for external debt financing to fund the capital expenditure.

Mana Thomas: No. I just want to understand if you would be going for an external debt financing to fund the CapEx?

Manna Thomas: No. I just want to understand if you would be going for an external debt financing to fund the CapEx?

Speaker #3: Yeah, definitely. See, to me, there's by all means, we have a clean balance sheet. And that's mainly been kept clean for the growth and expansion.

Fati Hussain Al Balushi: Well, definitely. There's by all means, we have a clean balance sheet, and that's mainly been put clean for the growth and expansion. On the fittest approach for proper investment, we would definitely optimize the core of it or the capital structure of all those projects once we reach. So we'll have different debt/equity structure and approval from the board. Whatever we had approved yearly in 2023 would need to be reviewed and restudied and updated if we decided to go on a full thrust for that project out.

Fatick Al Balushi: Well, definitely. There's by all means, we have a clean balance sheet, and that's mainly been put clean for the growth and expansion. On the fittest approach for proper investment, we would definitely optimize the core of it or the capital structure of all those projects once we reach. So we'll have different debt/equity structure and approval from the board. Whatever we had approved yearly in 2023 would need to be reviewed and restudied and updated if we decided to go on a full thrust for that project out.

Speaker #3: And on the fittest approach for proper investment, we would definitely optimize the corporate or the capital structure of all those projects once we reach.

Speaker #3: So we'll have different debt-equity structures and approval from the Board. Whatever we had approved earlier in 2023 would need to be re-reviewed, restudied, and updated if we decide to go for a full trust for that project output.

Speaker #2: Okay, understood. Also, regarding the associate of Monday Oman, I can see there's a massive improvement in the performance. So, can you please give a light on what is driving this outperformance?

Mana Thomas: Okay, understood. Also, regarding the associate of Mondi Oman, I can see there's a massive improvement in the performance. So, can you please give a light on what is driving this outperformance, and is this sustainable?

Manna Thomas: Okay, understood. Also, regarding the associate of Mondi Oman, I can see there's a massive improvement in the performance. So, can you please give a light on what is driving this outperformance, and is this sustainable?

Speaker #2: And is this, sustainable?

Fati Hussain Al Balushi: Yes. Let Manish answer.

Fatick Al Balushi: Yes. Let Manish answer.

Speaker #3: Yes, the financials. This is, in addition to their core activity, they also, usually in previous quarters, have taken a hit from currency variations.

Manish Jain: This is, in addition to their core activity, they also usually in previous quarter, they have taken a hit of currency variations. This time they have managed well, and this is one of the reasons they have reported well compared to the corresponding period.

Speaker #3: This time, they have managed well, and this is one of the reasons they have reported well compared to the corresponding period. In the prior period, the Euro was quite appreciated in value, and mainly, the main driver on the procurement is that they are procuring the paper ball from Europe.

Fati Hussain Al Balushi: In the prior period, the euro was quite appreciated on the value and Mondi main drive on the procurement, they are procuring the paper pulp from Europe and delivered by Europe. Given that euro being quite depreciated roughly or rightly within the close proximity of this year, that has added that positive performance, as explained by Manish. Clear, young lady?

Fatick Al Balushi: In the prior period, the euro was quite appreciated on the value and Mondi main drive on the procurement, they are procuring the paper pulp from Europe and delivered by Europe. Given that euro being quite depreciated roughly or rightly within the close proximity of this year, that has added that positive performance, as explained by Manish. Clear, young lady?

Speaker #3: And divide by Europe. And, given that, the euro being quite depreciated, roughly or rightly within the close proximity of this year, that has added to that positive performance.

Speaker #3: As explained by Manish. Clear, young lady?

Speaker #2: Yes, yes. Thank you.

Mana Thomas: Yes. Thank you.

Manna Thomas: Yes. Thank you.

Speaker #3: Any other questions? Any other questions? Because we'll nail three per one.

Fati Hussain Al Balushi: Any other question? Any other question? We have three in one.

Fatick Al Balushi: Any other question? Any other question? We have three in one.

Mana Thomas: Yes. Just one more last. What is your current utilization rate for the plants?

Manna Thomas: Yes. Just one more last. What is your current utilization rate for the plants?

Speaker #2: Yes, just one last question. What is the current utilization cap rate for the plants?

Speaker #3: I think I'll allow Mr. Acting CEO, Mr. Jing Tao, to add to that. I think we are mostly around 100 percent utilization, except for whenever that trip happens.

Fati Hussain Al Balushi: I think I will allow Acting CEO, Mr. Jing Tao, to add to that. I think we are mostly around 100% utilization, except whenever that trip happens, the utilization rate of the plant.

Fatick Al Balushi: I think I will allow Acting CEO, Mr. Jing Tao, to add to that. I think we are mostly around 100% utilization, except whenever that trip happens, the utilization rate of the plant.

Speaker #3: The utilization rate of the plant is roughly around 100 percent. We can claim it's 98 or 99 percent, except for those times whenever we have these trips and we are maintaining it, right.

Jiang Tao: Yeah.

Fati Hussain Al Balushi: Roughly around 100%. We can claim it is 98%, 99%, except those times whenever we have these trips and we are maintaining it right.

Fatick Al Balushi: Roughly around 100%. We can claim it is 98%, 99%, except those times whenever we have these trips and we are maintaining it right.

Speaker #2: Okay.

Mana Thomas: Okay.

Manna Thomas: Okay.

Speaker #3: But we can run even higher capacity if demand happens, and push on the accelerator to produce and deliver. That's the commitment from the company to the countries.

Fati Hussain Al Balushi: But we can run even higher capacity if demand happens and push on the accelerator to produce to deliver. That's the commitment from the company to the country.

Fatick Al Balushi: But we can run even higher capacity if demand happens and push on the accelerator to produce to deliver. That's the commitment from the company to the country.

Speaker #2: Understood. Thank you for the answers.

Mana Thomas: Understood. Thank you for the answers.

Manna Thomas: Understood. Thank you for the answers.

Speaker #3: Yes. Yes, please.

Fati Hussain Al Balushi: Yes, please.

Fatick Al Balushi: Yes, please.

Speaker #1: Are there any other questions from our audience? Please, any other questions?

Ghada Al Zajali: Any other questions from our audience, please? Any other questions? No, chat there's no questions. Nothing.

Ghada Al Zadjali: Any other questions from our audience, please? Any other questions? No, chat there's no questions. Nothing.

Speaker #3: You brought the sorry.

Speaker #1: No, Chat, there are no questions. Muffy, Muffy.

Fati Hussain Al Balushi: Okay.

Fatick Al Balushi: Okay.

Speaker #3: David.

Speaker #1: Rao, we come back to you. Please do raise your questions.

Ghada Al Zajali: Rahul, we come back to you. Please do raise your questions.

Ghada Al Zadjali: Rahul, we come back to you. Please do raise your questions.

Speaker #4: Thank you. Thank you for your time. I have a follow-up question regarding the expansion—specifically, the Greenfield expansion. You mentioned that if there is excessive demand in the country, you will go for this expansion.

Rao Amirali: Thank you. Thank you for the time.

Rao Aamir Ali: Thank you. Thank you for the time.

Rao Amirali: I have a follow-up question regarding the extension, Greenfield extension. You mentioned that if there is excessive demand in the country, you will go for this extension. So, what is the current market of Oman, in terms of volumetric sales? How much volume is fulfilled by the local producer, and how much is imported from outside of Oman? After the situation, like the Middle East situation, the import for Oman, Iran has decreased. What are the other sources of import in Oman, if you can put some light?

Rao Aamir Ali: I have a follow-up question regarding the extension, Greenfield extension. You mentioned that if there is excessive demand in the country, you will go for this extension. So, what is the current market of Oman, in terms of volumetric sales? How much volume is fulfilled by the local producer, and how much is imported from outside of Oman? After the situation, like the Middle East situation, the import for Oman, Iran has decreased. What are the other sources of import in Oman, if you can put some light?

Speaker #4: What is the current market in Oman in terms of volumetric sales? How much of the volume is fulfilled by local producers, and how much is imported from outside of Oman?

Speaker #4: And after this situation, like the Middle East situation, the imports for Oman and Iran have decreased. And what are the other sources of imports into Iran?

Speaker #4: In Oman, if you can put some light on it.

Speaker #3: On a prima facie basis, you will find that the local demand would range between 8 to 12 million tons per year. Local producers can suffice if I gross it up.

Fati Hussain Al Balushi: On prima facie concept, you will find that the local demand would range between 8 to 12 million tons per year. Local producers can suffice, if I gross it up, Oman Cement, Raysut, and overall as a group. Al Madina, Al Arabia Cement, and Majan, and there is a new grinding station to come here, along with Buftar down in the south. This will range almost on the 8.5 to 9. So the capacity is already there, per se, if the demand maintains at that. I am also carving out whatever Raysut is exporting, so I am not calculating that in the consideration. The demand could be quite met from the local supplier if the market got to be quite locked or, God forbid, if any unforeseen circumstances happen that the government or the country gets quite not supported by a further imported cement.

Fatick Al Balushi: On prima facie concept, you will find that the local demand would range between 8 to 12 million tons per year. Local producers can suffice, if I gross it up, Oman Cement, Raysut, and overall as a group. Al Madina, Al Arabia Cement, and Majan, and there is a new grinding station to come here, along with Buftar down in the south. This will range almost on the 8.5 to 9. So the capacity is already there, per se, if the demand maintains at that. I am also carving out whatever Raysut is exporting, so I am not calculating that in the consideration. The demand could be quite met from the local supplier if the market got to be quite locked or, God forbid, if any unforeseen circumstances happen that the government or the country gets quite not supported by a further imported cement.

Speaker #3: Oman Cement, Raysut, and overall as a group, and Medina, and Al Arabia, and Majan, and there's a new grinding station to come here, along with Buraimi down in the north, and in the south.

Speaker #3: This will range almost from eight and a half to nine. So the capacity is already there, per se, if the demand is maintained at that.

Speaker #3: And I'm also carving out whatever Raisut is exporting, so I'm not calculating that in the consideration. The demand could be quite met from the local supplier.

Speaker #3: If the market were to become quite locked, or, God forbid, if any unforeseen circumstances happened such that the government or the country were not supported further via imported cement...

Speaker #3: The merit of the imported cement is mainly coming on a merit of price. So, I will not call it a bit of a fierce fight, but an unlevel, unlevel playground.

Fati Hussain Al Balushi: The merit of the imported cement is mainly coming on a merit of price. I will not call it a bit of fierce fight, but unleveled playground. The advantage of those other players who is having maybe subsidy support from wherever their governments or is unlike that we have here. We have different factors which are still loaded on our side, and that goes tandem to the question on the revenue once you ask me whether this is purely on price. It was partially from the volume, but significantly on the price. We cannot compete with the other people on price because we have a commitment and obligation to maintain ICV as well, the in-country value. We have Omanization standing at 75%, 76% as Oman Cement, while the market or the industry practice is around 35% or 40% whatsoever.

Fatick Al Balushi: The merit of the imported cement is mainly coming on a merit of price. I will not call it a bit of fierce fight, but unleveled playground. The advantage of those other players who is having maybe subsidy support from wherever their governments or is unlike that we have here. We have different factors which are still loaded on our side, and that goes tandem to the question on the revenue once you ask me whether this is purely on price. It was partially from the volume, but significantly on the price. We cannot compete with the other people on price because we have a commitment and obligation to maintain ICV as well, the in-country value. We have Omanization standing at 75%, 76% as Oman Cement, while the market or the industry practice is around 35% or 40% whatsoever.

Speaker #3: The advantage of those other players who are maybe having subsidy support from wherever—their governments or so—is unlike what we have here. We have different factors which are still loaded on our side.

Speaker #3: And that goes in tandem with the question on revenue when you asked me whether this is purely on price. But we—it was partially from the volume, but significantly on the price.

Speaker #3: We cannot compete with the other people on price because we have a commitment and obligation to maintain ICV as well—the in-country value.

Speaker #3: We have Omanization standing at 75 or 76 percent at Oman Cement, while the market or industry practice is around 35 or 40 percent, or thereabouts.

Speaker #3: So we still maintain that kind of contribution and commitment. Other than that, the contractors, the local communities—we source from them.

Fati Hussain Al Balushi: We still maintain that kind of contribution and commitment. We have, other than that, the contractors, the local communities that we source from them, SMEs. Our raw material mostly within the country, we are buying from those producer of the different quarries. We maintain that. Imported cement, if I may reflect on your further point of the question. The import cement still, by the way, even with this geopolitical tension, is still coming through. Not just the cement, even the clinker. In specific instance, on favoritism or stance or preference on the price, on the commercial margin that other people can make, either retailers, wholesalers, either being quite, I would call it intermediary users, grinding stations, who are not really stabilizing the market along the local producers once it comes to the local content per se.

Fatick Al Balushi: We still maintain that kind of contribution and commitment. We have, other than that, the contractors, the local communities that we source from them, SMEs. Our raw material mostly within the country, we are buying from those producer of the different quarries. We maintain that. Imported cement, if I may reflect on your further point of the question. The import cement still, by the way, even with this geopolitical tension, is still coming through. Not just the cement, even the clinker. In specific instance, on favoritism or stance or preference on the price, on the commercial margin that other people can make, either retailers, wholesalers, either being quite, I would call it intermediary users, grinding stations, who are not really stabilizing the market along the local producers once it comes to the local content per se.

Speaker #3: SMEs. Our kind of raw material is mostly within the country. We are buying from those producers of the different quarries, so we maintain that.

Speaker #3: Imported cement, if I may reflect on your further point of the question, the imported cement is still, by the way, even with this geopolitical tension, still coming through.

Speaker #3: Not just the cement, even the clinker. In specific instances, on favoritism or stands, or preference on the price, on the commercial margin that other people can make.

Speaker #3: Either retailers, wholesalers—either being quite, I would call it, intermediary users, grinding stations—who are not really stabilizing the market along with the local producers once it comes to the local content per se.

Speaker #3: And preferring that imported cement, imported clinker, be used for maximizing the width and the shareholder values for their own shareholders. So this is the perspective.

Fati Hussain Al Balushi: Preferring that imported cement, imported clinker be used for maximizing the wealth and the shareholder values for their own shareholders. This is the perspective. If you ask me about a volume, per se, circular, how much is coming from abroad? Honestly, I don't have the latest update quantity. Jingtao, do you have any highlight on how much we imported as of recent?

Fatick Al Balushi: Preferring that imported cement, imported clinker be used for maximizing the wealth and the shareholder values for their own shareholders. This is the perspective. If you ask me about a volume, per se, circular, how much is coming from abroad? Honestly, I don't have the latest update quantity. Jingtao, do you have any highlight on how much we imported as of recent?

Speaker #3: And if you ask me about a volume, per se circular, how much is coming from abroad, I honestly, I don't have a latest update quantity.

Speaker #3: But, Jing Tao, do you have any highlights on how much was imported as of recently?

Speaker #4: Our import, or the import figure that, according to the information I think from last year, is different. So, from Iran, the clinker and cement imported per year is around 600,000 to 700,000 tons, something like this.

Jiang Tao: For import, according to the information, I think last year is different. From Iran, that clinker and cement per year is around 600,000 tons to 700,000 tons, like this.

Speaker #3: But in this, it's never sleeping. It's still coming in.

Fati Hussain Al Balushi: But it is never sleeping. It is still coming in.

Fatick Al Balushi: But it is never sleeping. It is still coming in.

Speaker #4: No, never. Even yeah, even during the after the war, during this, several months, just one quarter that, between the Muscat and Sohar, still there's there's still import, the clinker and, cement, from Iran.

Jiang Tao: Never. Even after the war, during these several months, just the one port, between Muscat and Sohar, still import the clinker and cement from Iran. Even in July, it is almost 60,000 tons from Iran. Also, after the war, that may be the cost of the cement from UAE is increasing because of the coal cost increase. But their cement still export to Sohar area continue. Before, like last year, maybe more than 1 million tons. But this year, maybe less.

Speaker #4: Like, even in July, it's almost 60,000—60,000 tons from Iran. And also that, after the war, maybe the cost of cement from UAE is increasing because of the coal, because of the coal cost increase.

Speaker #4: But their cement still, still exports to the Sohar area. They continued from before, like last year—maybe more than 1 million tons. But this year, maybe less.

Speaker #3: Well, even the less statement is competing on a kind of inferior, I would call it, still within the standard. Oman Cement never compromises on the standard above quality specifications.

Fati Hussain Al Balushi: Even the least statement is competing on the kind of inferior, I would call it, still within the standard. Oman Cement never compromise on the standard above quality specifications. Maybe in some standard, you would have 42 as a bare minimum. We have somewhere, we have the 50, 52, and 48 strength, while others come into the mid-range or lower side. We still maintain that path to continue, and we will never compromise on quality.

Fatick Al Balushi: Even the least statement is competing on the kind of inferior, I would call it, still within the standard. Oman Cement never compromise on the standard above quality specifications. Maybe in some standard, you would have 42 as a bare minimum. We have somewhere, we have the 50, 52, and 48 strength, while others come into the mid-range or lower side. We still maintain that path to continue, and we will never compromise on quality.

Speaker #3: Maybe in some standards you would have 42 as a bare minimum. Somewhere, we have 50 or 52, and 48 strength, while others are coming to the mid-range or lower side.

Speaker #3: We still maintain that commitment, and we will never compromise on quality.

Speaker #4: Mm-hmm. Yeah.

Rao Amirali: Mm-hmm. Yeah.

Rao Aamir Ali: Mm-hmm. Yeah.

Speaker #3: Any other question, Rao? Audience?

Fati Hussain Al Balushi: Any other question, Rao?

Fatick Al Balushi: Any other question, Rao?

Speaker #2: Mm-mm. Thank you. Thank you for the detailed answer. Clearly understood. One last question, if you allow me.

Rao Amirali: Thank you. Thank you for the detailed answer. Clearly understood. One last question, if you allow me.

Rao Aamir Ali: Thank you. Thank you for the detailed answer. Clearly understood. One last question, if you allow me.

Speaker #3: Yeah.

Fati Hussain Al Balushi: Yeah.

Fatick Al Balushi: Yeah.

Speaker #2: About the alternative fuel—so, what is the status of alternative fuel? And what is the potential impact, like in savings, annual savings on margins, if you can put it like that?

Rao Amirali: About the alternative fuel. What is the status of alternative fuel and what is the potential impact, like in annual savings on margins, if you can put it like that?

Rao Aamir Ali: About the alternative fuel. What is the status of alternative fuel and what is the potential impact, like in annual savings on margins, if you can put it like that?

Speaker #3: Yeah, so thank you for your interest. Mainly on this, we are moving on two sides. One on whatsoever could be sourced from the market.

Fati Hussain Al Balushi: Well, thank you for your interest. Mainly on this, we are moving on two sides. One, on whatsoever could be sourced from the market and using also our kind of TDF project to keep utilizing this kind of alternative fuel, tires and others. That is mainly within almost a progressive growth. Earlier last year was it into the 0.2%, 0.3%. Now we are almost moving to the 0.5% as of H1. However, we are still in some discussions ongoing on the major projects, and that is taking a bit of time because of directional move on this specific waste management philosophy in the country and the mandate split. Mandate split, which has been given earlier to the potential partner and now is with another, what do you call it, entity, which we are looking for to conclude that potential agreement.

Fatick Al Balushi: Well, thank you for your interest. Mainly on this, we are moving on two sides. One, on whatsoever could be sourced from the market and using also our kind of TDF project to keep utilizing this kind of alternative fuel, tires and others. That is mainly within almost a progressive growth. Earlier last year was it into the 0.2%, 0.3%. Now we are almost moving to the 0.5% as of H1. However, we are still in some discussions ongoing on the major projects, and that is taking a bit of time because of directional move on this specific waste management philosophy in the country and the mandate split. Mandate split, which has been given earlier to the potential partner and now is with another, what do you call it, entity, which we are looking for to conclude that potential agreement.

Speaker #3: And, also, using our TDF project to keep utilizing these kinds of alternative fuels—tires and others. So that is mainly within almost a progressive growth.

Speaker #3: Yearly, last year it was in the 0.2 to 0.3 percent range. Now we are almost moving to 0.5 percent as of the first half. However, we are still in some ongoing discussions on the major projects.

Speaker #3: And that is taking a bit of time because of the directional move on this specific waste management philosophy in the country, and the mandate split.

Speaker #3: Mandate split which has been given earlier to the potential partner and now is with another what do you call it, entity which we are looking for, to conclude that, potential agreement.

Speaker #3: If it comes positively within the second half of this year, we will give this announcement. But there is work behind the scenes, and we'll keep you posted whenever things come to be quite right and disclosable.

Fati Hussain Al Balushi: If it comes positively within the H2 of this year, we will give this announcement. There is work behind the scenes, and we will keep you posted whenever things comes to be quite right and disclosable. On the alternative fuel, we have been working collectively on all whatsoever possible to digest and help the environment and the country. Being also the oil sludge, the waste from the municipalities, the waste from the industries. We are open for also studying whatever potential of other alternative materials that can come and used to be as a fuel for energy replacement. This is a work in progress, and also we are growing the team. We have already finished, I would call it, the interviews for the 2 major senior position for this alternative fuel place.

Fatick Al Balushi: If it comes positively within the H2 of this year, we will give this announcement. There is work behind the scenes, and we will keep you posted whenever things comes to be quite right and disclosable. On the alternative fuel, we have been working collectively on all whatsoever possible to digest and help the environment and the country. Being also the oil sludge, the waste from the municipalities, the waste from the industries. We are open for also studying whatever potential of other alternative materials that can come and used to be as a fuel for energy replacement. This is a work in progress, and also we are growing the team. We have already finished, I would call it, the interviews for the 2 major senior position for this alternative fuel place.

Speaker #3: On the alternative fuel, we have been working collectively on all, whatsoever possible, to digest and help the environment and the country. Being also the oil sludge, the—what do you call it—the waste from the municipalities, the waste from the industries, and we are open for also studying whatever potential of other alternative materials that can come and be used as a fuel for energy replacement.

Speaker #3: This is a work in progress. And also, we are growing the team. We have also— we've already finished, I would call it, the interviews for the two major senior positions for this alternative fuel place.

Speaker #3: And, hopefully by next month, we would have the people on ground or the month after, given that they are saying they are not steered or in transition.

Fati Hussain Al Balushi: Hopefully by next month, we would have the people on ground, or the month after giving that they are saying they are not spirited or transition. We will move on to the final recruitment of maybe some other quality control on that side and juniors. That is what we want to do. Commitment from the resource, we are progressing. We are also putting that kind of surveying to the market aggressively, and we will keep you posted as well. Another question you want to add?

Fatick Al Balushi: Hopefully by next month, we would have the people on ground, or the month after giving that they are saying they are not spirited or transition. We will move on to the final recruitment of maybe some other quality control on that side and juniors. That is what we want to do. Commitment from the resource, we are progressing. We are also putting that kind of surveying to the market aggressively, and we will keep you posted as well. Another question you want to add?

Speaker #3: And we will move on to the final recruitment, maybe some other quality control on that side. And juniors, that's what we want to do.

Speaker #3: Our commitment to the resource is progressive. We are also putting that kind of surveying to the market aggressively, and we'll keep you posted as well.

Speaker #3: Any other questions you want to add?

Speaker #4: Yeah, yeah, yeah, yeah. And also, we also strengthened the cooperation with BEER. And now, we are also still discussing the municipal solid waste.

Jiang Tao: Yeah. Also that we also will strength the cooperation with be'ah, and now we are also still discussing the municipal solid waste, like the green waste from the be'ah. Also that we are also sourcing some alternative materials from other industrial company, because I think this is the advantage of the OCC because the Huaxin Group to do the eco business maybe more than, until now, maybe more than 18 years. I think in China, Huaxin Group to do the eco business like the alternative fuels and materials, we are the top one in China. So many experience can transfer to OCC. Also, like Mr. Fadiq said, I also have the plan to build up the separate AFR team. Yeah.

Speaker #4: like the green waste. from the beer. And, also that we are also sourcing some alternative, alternative, materials. Yeah, from other industrial company. Because that, this is the advantage I think this is the advantage of the OCC because the Washington Group, to do the eco business maybe more than no, maybe more than 18 years.

Speaker #4: And I think in China, Washington Group does the eco business, like alternative fuels and materials. We are the top one in China.

Speaker #4: So many experience, can transfer to OCC. And also like, Mr. Fatiq said that I, I also have a plan to, to like to build up the, spec, separate AFR team.

Speaker #4: Yeah, so the manager and also the head of section will come into OCC to maintain the operation, because now we are continuing to treat co-processing, like with tire chips.

Jiang Tao: The manager and also the head of section will come in OCC and to maintain the operation, because now that we continuously to treat to co-processing like tire chips and other alternative fuels.

Speaker #4: And, other alternative fuels.

Speaker #3: Yeah, thank you. Any other questions from the audience? Radu?

Fati Hussain Al Balushi: Yeah.

Fatick Al Balushi: Yeah.

Jiang Tao: Yeah.

Fati Hussain Al Balushi: Thank you. Any other question, audience, Radha?

Fatick Al Balushi: Thank you. Any other question, audience, Radha?

Speaker #1: Are there any other questions from our audience, please? Yes? Are we cleared to take the question? Would anyone like to add any further questions?

Ghada Al Zajali: Any other questions from our audience, please?

Ghada Al Zadjali: Any other questions from our audience, please?

Fati Hussain Al Balushi: There is some chat.

Fatick Al Balushi: There is some chat.

Ghada Al Zajali: Yeah. I was clear that it was a question. Anyone would like to add any further questions?

Ghada Al Zadjali: Yeah. I was clear that it was a question. Anyone would like to add any further questions?

Speaker #3: I think chat should be.

Fati Hussain Al Balushi: I think chat you mean.

Fatick Al Balushi: I think chat you mean.

Speaker #4: Okay.

Speaker #1: Okay, the last question was from Safit.

Ghada Al Zajali: Last question was from Saffet.

Ghada Al Zadjali: Last question was from Saffet.

Speaker #3: Last, or there are two chats? No? Okay.

Fati Hussain Al Balushi: Last? Because there are two chats, no?

Fatick Al Balushi: Last? Because there are two chats, no?

Ghada Al Zajali: That's AJ Ku.

Ghada Al Zadjali: That's AJ Ku.

Fati Hussain Al Balushi: Okay. Then over to you.

Fatick Al Balushi: Okay. Then over to you.

Speaker #4: Okay.

Speaker #3: Then over to you.

Speaker #1: In this case, I would like to thank our distinguished participants who have attended this discussion session. We hope that we have fulfilled all your inquiries, clarifications, and interests regarding Oman Cement Company performance.

Ghada Al Zajali: In this case, I would like to thank our distinguished participants who have attended this discussion session. We hope that we have fulfilled all your inquiries and clarification and interest regarding Oman Cement Company performance. Allow me here to thank my management team who have attended, and for their great efforts in the company's performance. I shall pass the mic over to Mr. Jingtao and Mr. Fatiq, CFO of the company, to close up the discussion session on the company's unaudited financials for the 6 months period ended 30 June 2026.

Ghada Al Zadjali: In this case, I would like to thank our distinguished participants who have attended this discussion session. We hope that we have fulfilled all your inquiries and clarification and interest regarding Oman Cement Company performance. Allow me here to thank my management team who have attended, and for their great efforts in the company's performance. I shall pass the mic over to Mr. Jingtao and Mr. Fatiq, CFO of the company, to close up the discussion session on the company's unaudited financials for the 6 months period ended 30 June 2026.

Speaker #1: And allow me here to thank my management team, who have attended, for their great efforts and the company's performance. I shall pass the mic over to Mr. Green Cow and Mr. Fatiq, CFO of the company, to close up the discussion session on the company's unaudited financials for the six-month period.

Speaker #1: And it's 30th June 2026.

Speaker #3: He'll contact money. Contact. Contact.

Fati Hussain Al Balushi: Contact, Ma'am. Contact.

Fatick Al Balushi: Contact, Ma'am. Contact.

Speaker #1: Yes, yes.

Ghada Al Zajali: Yes.

Ghada Al Zadjali: Yes.

Fati Hussain Al Balushi: I would say, first of all, thank you for your interest. Thank you for committing the time to appear and look into this kind of review discussion. We remain available if you have any clarification. Abdullah is the forefront there, and we are also standing to support. Our contact and communication channels are on the screen. Please feel free to reach us. We stand to be quite fairly, transparently disseminating the information across all panel of the interested parties, and look forward with your support, recommendation, and fair assessment to bring more, I would call it attraction, to Oman Cement as being not the cementing company only, but the construction material company that is to grow, to come, and hopefully next quarter will announce some good positive vibe.

Fatick Al Balushi: I would say, first of all, thank you for your interest. Thank you for committing the time to appear and look into this kind of review discussion. We remain available if you have any clarification. Abdullah is the forefront there, and we are also standing to support. Our contact and communication channels are on the screen. Please feel free to reach us. We stand to be quite fairly, transparently disseminating the information across all panel of the interested parties, and look forward with your support, recommendation, and fair assessment to bring more, I would call it attraction, to Oman Cement as being not the cementing company only, but the construction material company that is to grow, to come, and hopefully next quarter will announce some good positive vibe.

Speaker #3: I would like to say, first of all, thank you for your interest. Thank you for committing the time to appear and look into this kind of TV discussion.

Speaker #3: We remain available if you have any clarifications. Abdullah is at the forefront there. And we are also standing by to support; our contact and communication channels are on the screen.

Speaker #3: Please feel free to reach us. We stand to be quite fairly transparently disseminating the information across all panel of the interested parties. And look forward with your support, recommendation, and fair assessment to bring more I would call it attraction to Oman Cement as being the not the cement in company only, but the construction material company that is to grow to come and hopefully next quarter will announce some good positive vibe.

Speaker #3: With that, I would like to hand over to Jintao for his input before we conclude. And then Mr. Abdullah will close the session.

Fati Hussain Al Balushi: With that, I would say handing over to Jingtao to put an input before we conclude, and then Mr. Abdullah to close the chapter, please.

Fatick Al Balushi: With that, I would say handing over to Jingtao to put an input before we conclude, and then Mr. Abdullah to close the chapter, please.

Speaker #3: Please.

Speaker #4: Okay. So thank you all for attending the meeting. And, like Mr. Fatiq said, we also have many plans for the future, like integration and also to expand our AFR co-processing.

Jiang Tao: Okay. Thank you all that you attending the meeting. Like Mr. Fadiq said, we also have many plans in the future, like the integration and also to expand our AFR co-processing, because we also have the social responsibility about the decarbonization. We will continue to increase our AFR co-processing and also to increase our TSR in the future. Hopefully that also according to your consideration, and we hope that look forward that we can have the better results in Q3. Yeah.

Speaker #4: Because we want to, because we also have the social responsibility about the decarbonization. So we will continue to increase our AFR co-processing and also to increase our TSR in the future.

Speaker #4: So hopefully, that also, according to your consideration, and we hope that—look forward that we can have a better result in Q3.

Speaker #4: Yeah. Thank you.

Fati Hussain Al Balushi: Thank you.

Fatick Al Balushi: Thank you.

Jiang Tao: Thank you.

Speaker #3: Abdullah?

Fati Hussain Al Balushi: Abdullah?

Fatick Al Balushi: Abdullah?

Speaker #2: Thank you, and see you next Q Day in November.

Abdullah Al Sayabi: Thank you, and see you next Q3 on November. Inshallah.

Abdullah Al Siyabi: Thank you, and see you next Q3 on November. Inshallah.

Speaker #3: Inshallah.

Speaker #4: Inshallah.

Fati Hussain Al Balushi: Inshallah.

Fatick Al Balushi: Inshallah.

Jiang Tao: Inshallah.

Speaker #1: So thank you.

Ghada Al Zajali: Thank you.

Ghada Al Zadjali: Thank you.

Fati Hussain Al Balushi: Thank you. Welcome board. Thank you.

Fatick Al Balushi: Thank you. Welcome board. Thank you.

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Half Year 2026 Oman Cement Co SAOG Earnings Call

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