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Oman cables posts h1 net profit of $24.3mn

Oman Cables Industry Co has reported a group net profit of RO9.4mn ($24.3mn), after deducting non-controlling interest, for the six months ended June 30, 2016, a decline of two per cent from RO9.6mn posted in the same period of the previous year

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Cable, HVAC applications, Oman, Oman cables, Power cables, News

Oman Cables Industry Co has reported a group net profit of RO9.4mn ($24.3mn), after deducting non-controlling interest, for the six months ended June 30, 2016, a decline of two per cent from RO9.6mn posted in the same period of the previous year.

Total group sales declined 15 per cent to RO123.9mn from RO145.4mn. Cost of sales fell 15.6 per cent to RO107.4mn from RO127.3mn a year earlier.

Oman Cables, in a report released to the MSM, said the decrease in sales is mainly attributable to the 20 per cent fall in prices of major raw materials. “The impact of the current economic situation on the growth of infrastructure in the markets where Oman Cables operates is being closely monitored,” it said.

However, the parent company's net profit for the six months ended June 30, 2016 rose 8.8 per cent to RO9.8mn from RO9mn in same period of last year. The parent company's sales decreased eight per cent to RO108.2mn from RO117.7mn.

Oman Cables said sales and profitability at its subsidiary Oman Aluminium Processing Industries LLC (OAPIL) is substantially lower for the six-month period ended June 30, 2016 compared to the same period in 2015. “The aluminium market is facing a slowdown and is impacting OAPIL results and premiums are under pressure. It may be noted that 2015 was an exceptional year for the aluminium rod premium levels.”

Group net profit margin inched up to 7.84 per cent for the first half of 2016 from 7.68 per cent in the same period last year.

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