Friday 15 / November / 2024
Muscat: Omani industry managed to achieve reasonable growth in financial results last year, despite competition from outside the country.
Several manufacturing companies reported moderate growth in net earnings in 2015. For instance, Areej Vegetable Oils and Derivatives Co. managed to control its expenses and post OMR2.6 million in net profits, reflecting a growth of 1.2 per cent in 2015, compared with the previous year.
The company said the growth and good financial sheets, along with accumulated profits had forced the company board to recommend an 85 per cent dividend, including a 50 per cent stock dividend and a 35 per cent cash dividend, which is equal to OMR0.350 per share.
The company also pointed out that it operates in a very competitive atmosphere, as the 12 oil factories operating in the Gulf Cooperation Countries (GCC) countries are exempted from custom duties in the Sultanate. Moreover, the GCC countries are considered a hub for the export of vegetable oil and fats.
In general, GCC vegetable oil and fat products are available in all other markets in the region.
Free trade policies have enabled companies in the region to expand their markets. The company added that the tough competition has pressured profit margins and led to decreasing the sale price for consumers.
The Oman Cables Industry (SAOG) said it has performed well despite the challenges posed by the tough competition in the market and copper prices declining by 17 per cent in 2015. The company said it even managed to increase its sales and net profits.
The financial statements of the company point out that the group’s net profits stood at OMR21.3 million last year, compared with OMR19.8 million in 2014.
The company affirmed that it is committed to quality, which is one of the reasons behind its success as it enhances the confidence of its local and foreign customers.
The company also pointed out that continuous demand for its products during this year augments its optimism about the good opportunities for growth. This positive outlook is shared by many industrial companies.
For example, Oman Optic Fibre Cables believes that the future outlook for its optic fibre cables in the global markets is more positive than in the Middle East markets as some oil and gas projects have been shelved due to low oil and gas prices. The company said market conditions have pushed it to appoint distributors in Africa and Europe to enhance its status at the market.
The company also said it will sell the optic fibres, the basic material used for manufacturing cables, in the Kingdom of Saudi Arabia, India and Iran. It reiterated that it seeks to enhance its base in specialised markets, such as defence and railway.
During 2015, the company managed to increase its operational profits to OMR1.9 million, compared with OMR1.6 million in 2014. The net profits of the company last year stood at OMR1.6 million, compared with OMR7.8 million in 2014, including OMR7.3 million in revenues from insurance claims. If this item is excluded, the company's profit growth in 2015 will be good.
National Pharmaceutical Industries Co. (NPI) said the GCC market is very big for the pharmaceutical industrial companies in the region, and therefore there are great opportunities for the sale of pharmaceutical products in the Sultanate and countries of the region's markets.
Last year, the company's sales grew by 600,000 to OMR10.6 million. The company said the increase in sales came mainly from the export markets, which increased the company profits, despite an increase in operational costs. The company’s net profits grew by 15 per cent to hit OMR1.053 million.
Meanwhile, Omani Packaging Co. managed to withstand the competition and maintain its competitive position in the local market. The company also managed to boost its export share, which resulted in a 10 per cent increase in sales.
The company added that it is now seeking to continue growing and maintaining its share in the market. It has thus revised its marketing policy from time to time to boost its share in different sectors. The company will gradually reduce its costs to reach better profit margins. Its net profits stood at OMR959,000 in 2015, up from OMR270,000 in 2014.
