Oman Cables' group net profit for H1 2016 declines 2% on the back of falling aluminium prices

Oman Aluminium Processing Industries LLC (OAPIL), a subisdiary of Oman Cables posted lower sales and profit for the six-month period ended June 30, 2016 compared to the same period previous year owing to the falling aluminium prices during the period under review. The decline in sales revnues affected the group net profit significantly.

The Gulf based electrical cable company attributed the decrease in sales 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 in a media release.

“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,” the release stated.

Oman Cables Industry Co has reported a group net profit of RO9.4mn (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 of the group 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.

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.

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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