Oman Cables posts fall in revenue

11/10/2016 08:01 AST

On the back of seasonality impact and lower copper prices, Oman Cables Industry registered a drop in its revenue for the nine-months period ending on September 30, this year. At the same time, the company also reported a fall in its net profit which stood at RO 11.86 million for the same period compared to profit of RO 13.05 million in the same period last year. The total revenue reached RO 44.080 million, registering a decline of 17 per cent year on year and 21.0 per cent quarter on quarter. The group company during the third quarter posted revenue of RO 48.882 million a decline of 25.0 per cent year on year and 21.7 per cent quarter on quarter.

The company's profit after tax for the quarter stood at RO 2.536 million, a considerable drop of 11.4 per cent year on year and 46.2 per cent quarter on quarter. The net profit margins of the company too narrowed to 5.8 per cent in the third quarter as against 8.5 per cent in the second quarter and widened marginally from 5.4 per cent in the third quarter in 2015. For the third quarter of the current year, the group's net margins stood at 5.0 per cent as against 5.4 per cent in the corresponding period last year and 7.6 per cent in the second quarter this year.

"The company's subsidiary Oman Aluminium Processing Industries (OAPIL) performance continued to disappoint", Gulf Baader Capital Market said in a research report. The revenue contribution from its subsidiary witnessed a decline of 60.4 per cent and 27.2 per cent on quarter on quarter basis for the period under review due to prevailing lower demand. OAPIL posted an estimated loss of RO 150,000 during the third quarter as compared to the earnings of RO 1.260 million in the same period last year. As per the company, slowdown in Aluminium Rod market had a negative impact during the quarter.

Oman Daily Observer