Oman Cement Company raised its profit outlook on Tuesday after receiving $19 million in government compensation, sending its share price 7 percent higher.

The government paid Oman Cement Company 7.34 million rials ($19.06 million) on June 14 as a compensation for keeping cement prices low on the directive of the ministry of finance, the company said in a statement on the bourse website.

"This will have the effect of improving the profitability of the company by this amount during the current quarter and the year ending 31st December 2010," an Oman Cement statement said.  

The news lifted shares in the company by 7 percent, making it Muscat's top gainer.

Oman Cement posted a 30.1 percent profit drop in 2008 to 12.473 million rials but made 24.32 million rials net profit in 2009.

"We asked Oman Cement to keep prices low to sustain the economy and keep projects going," a finance ministry official told Reuters.

Oman spent over $16 billion in 2009 to build infrastructure including work on three airports, two ports, power plants, hospitals and roads.- Reuters