(MENAFN- Muscat Daily) Oman Cables Industry Co posted a 41.8 per cent rise in 2013 net profit to RO16.9mn, compared with RO11.9mn in the previous year, on the back of higher sales volume and a reduction in production costs.
Total sales increased to RO306.1mn in 2013, a growth of 19 per cent compared with the previous year's sales of RO257.2mn, the company said in its filing to the Muscat Securities Market (MSM).
Oman Cables Industry said that its strategy of strengthening the domestic and GCC markets, while making further inroads into the international EPC-related segment had proved successful. It sold almost 30 per cent more volume in 2013.
''The increase in profitability is primarily due to an increase in the contribution from sales and a reduction in the cost of production, as also the controlling of overheads. The year 2013 has been the best year in terms of profitability by far,'' the company said in its board of directors' report.
It said, ''Sales increased in spite of a lower average copper rate in comparison with 2012, and on the back of the continuous strategic development of the company focusing on revenues, its entry into new markets, and on prioritising profitable projects.''
Oman Cables Industry further said that its project to enhance the production capacity of multi-core cables to meet the growing demand of customers in the local and international markets has been successfully completed within budget. This project will increase capacity and will cater to the increased demand of customers. It is expected to further contribute to the profitability of the company.
''With infrastructure spending and continued investment in the oil and gas sector in the region, the management believes that the demand for cables will continue to grow,'' the company said.
The board of directors of Oman Cables recommended a cash dividend of 88bz per share of 100bz face value, to be approved by shareholders at the annual general meeting.
The company's earnings per share was 188bz in 2013, compared with 133bz in 201
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