Raysut Cement, Oman's second largest producer of the building material, has posted its biggest quarterly profit ever, thanks to increased production and higher sales.

Net income in the three months to March 31 surged 61.9 per cent to RO11.855 million ($30.78 million), compared with RO7.322 million in the first quarter of last year, it said.

Sales revenue increased 60.7 per cent to RO21.939 million. 'The strong growth in construction activity as seen last year is continuing during this year as witnessed from cement demand,' chairman Mohammed bin Alawi Ali Muqaibal said.

Cement production in the first quarter increased 40.4 per cent to 712,518 tonnes.

Analysts in a Reuters net profit survey last month said they expected Raysut's quarterly profit to range between RO8.5 million and RO9.79 million, for an average of RO9.23 million.

Companies in Oman have announced construction projects in oil, gas and industries worth more than $30 billion in the four years to December 31, according to London-based Meed magazine.

Oman's $35.7 billion economy surged 7.2 per cent in 2006, the second-fastest pace so far this decade, according to government data.

The economy probably grew 7 per cent to 8 per cent in real terms last year, Oman's central bank governor said earlier.

Shares of Raysut were up 2.87 per cent. The stock has gained 44.31 per cent this year. Rival Oman Cement is up more than 46 per cent this year.