Abu Dhabi-listed Ras Al Khaimah Cement Co. net profit fell 56.5% in the second quarter chiefly due to a shortage in gas supplies.
First-half net profit was down 39.1% to AED42 million ($11.44 million), the company said in a statement without giving second-quarter figures.
Reuters calculations showed that the firm's second-quarter net profit stood at AED14.4 million compared to AED33.1 million in the year-ago period.
"This decrease was due to much higher energy costs. Restrictions on the natural gas supply ... intensified during the second quarter," the company said in the statement posted on the bourse Web site.
"These restrictions resulted in the consumption of more expensive liquid fuels and limited clinker production," it said adding that the decline came despite strong demand.
Extensive use of air conditioning units in the desert state was increasing the call on gas-fired power plants which are devouring gas supplies in the United Arab Emirates and leaving industry in some areas short.
Government-owned Ras al-Khaimah Gas Company (Rakgas) has an interruptible contract with Dolphin Energy to import gas from Oman. But most of that gas has been diverted to the federal grid for power generation.
Sales revenue fell 1.25% to AED165.5 million.
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