In its statement to the Muscat Securities Exchange (MSM), Al Maha Ceramics Company announced that its Board of Directors will appoint a consultant to conduct the feasibility study for considering the capacity expansion. The board will take the decision related to the capacity expansion based on the findings of this study.

Worth noting, the Sultanate’s Financial Affairs Council has doubled the natural gas price from 20.5 baizas per standard cubic metre to 41 per standard cubic metre. The decision will take effect starting January 1, 2015, a statement to MSM by Al Maha Cermaics revealed, highlighting that there will be an annual natural gas price increase by around three percent per annum starting January.

This price change “may affect the projected profits of [Al Maha Ceramics] in 2015 by approximately 5%”, the Company noted, adding that it plans to mitigate this financial impact by “reviewing the pricing across different market segments and implementation of certain cost reduction & efficiency enhancement initiatives”.

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