Oman Cables Industry's (OCI) net profit jumped 72.1 per cent for the nine-month period ended September 30, as compared to the same period in 2011.
The net profit for the nine-month period rose to RO6.9mn as compared to RO4mn during the same period in 2011. However, OCI's sales revenue during the nine-month period fell by 13.1 per cent to RO163.9mn over the same period last year.
"The decrease in sales is mainly on the account of the decrease in the copper price, though the sales volume has been maintained. The demand for OCI products remains in line with the long-term growth of infrastructure projects in Oman and the MENA region," the company said in its filing to MSM on Monday.
Analysts said that the financial performance of OCI next year will depend upon the performance of the power and construction sector and copper prices.
Anil Kumar, senior VP-research at Fincorp, said that the company has been placing more orders due to lower copper prices, which has improved their order backlog.
He said, "In 2013, the performance of the company depends on how the copper prices will behave. The company can expect to see a long-term growth rate in volume by four to five per cent.
"Though the contribution of the recently-acquired subsidiary Oman Aluminium Processing Industries is considerably lower, OCI can expect to see higher sales in 2013."
Sameer Kattiparambil, associate VP-research at EFG Hermes said that the OCI results were slightly better than expected. He said, "The company's margins have expanded which has resulted in a higher net profit."
© Muscat Daily 2012
