Oman Cables Industry Company has reported a 68 per cent decline in its group net profit for the year ended December 31, 2020. The group net profit fell to RO2.3mn for 2020 as compared to RO7.2mn reported in the previous year, mainly due to the weak sales volumes amid slowdown in the construction industry.
‘The lower oil prices and lockdowns due to the pandemic had an impact on all business sectors and the pressure on sales value was felt in all markets across different segments. The slowdown in construction industry is affecting cable market severely,’ Oman Cables Industry said in its report submitted to the Muscat Securities Market.
The parent company’s sales revenue for 2020 dropped to RO134mn as compared to RO165.4mn in 2019. The sales of the group fell to RO175.4mn last year from RO210.1mn in the previous year.
‘The decrease in profitability is mainly due to volume reduction as a result of the pandemic and low oil prices, which partially compensated by the cost control initiatives,’ Oman Cables Industry said.
According to the company’s report to the Muscat Securities Market, macroeconomic conditions have affected the cable market in the region and increased the pressure on sales price and margins.
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