23 July 2011
MUSCAT: Oman Cables Industry (OCI), the region's leading producer of high quality cables, said its net profit fell 27.3 per cent to RO3 million for the first half of 2011 from RO4.1 million for the same period last year.
The decline in net profit was attributed to intense competition in the region and a temporary slowdown in the global economy.
"The margins were impacted by steep price increases or raw materials. The management of overheads of the company remains an issue of focus and in line with current level of activities," the company's management report.
However, sales revenues rose remarkably by 46 per cent to RO148.92 million for the first half, over the same period last year.
"The increase was driven by volumes, commodity prices and the turnover of the subsidiary company Oman Aluminium processing."
The project to enhance medium voltage capacity has been successfully completed and it is currently under production. "Plant utilisation has improved during the period across all product lines."
OCI said its inflow of orders has slowed down due to the indirect effect of the current regional situation. The pattern of order intake has been further deterred by increased volatility of the copper price and customers are hesitant to stock cables due to the high volatility in the commodities market.
Earnings per share declined to RO0.035 by June-end from RO0.045, while net profit margin moved down to 2.15 per cent from 4.42 per cent.
Oman Aluminium Processing LLC (OAPIL), a joint venture of Oman Cables Industry and Takamul Investment, is well positioned with a healthy order book and the management expects it to positively contribute to the group's performance.
MUSCAT: Oman Cables Industry (OCI), the region's leading producer of high quality cables, said its net profit fell 27.3 per cent to RO3 million for the first half of 2011 from RO4.1 million for the same period last year.
The decline in net profit was attributed to intense competition in the region and a temporary slowdown in the global economy.
"The margins were impacted by steep price increases or raw materials. The management of overheads of the company remains an issue of focus and in line with current level of activities," the company's management report.
However, sales revenues rose remarkably by 46 per cent to RO148.92 million for the first half, over the same period last year.
"The increase was driven by volumes, commodity prices and the turnover of the subsidiary company Oman Aluminium processing."
The project to enhance medium voltage capacity has been successfully completed and it is currently under production. "Plant utilisation has improved during the period across all product lines."
OCI said its inflow of orders has slowed down due to the indirect effect of the current regional situation. The pattern of order intake has been further deterred by increased volatility of the copper price and customers are hesitant to stock cables due to the high volatility in the commodities market.
Earnings per share declined to RO0.035 by June-end from RO0.045, while net profit margin moved down to 2.15 per cent from 4.42 per cent.
Oman Aluminium Processing LLC (OAPIL), a joint venture of Oman Cables Industry and Takamul Investment, is well positioned with a healthy order book and the management expects it to positively contribute to the group's performance.
© Times of Oman 2011
