Oman Cables completes purchase of Indian company

By Business Reporter — MUSCAT: Jan 28 - Oman Cables Industry (OCI) has announced that it has successfully negotiated the purchase of the remaining 60 per cent stake in Associated Cables Private Limited (ACPL) India.  The stake was purchased from Draka UK Group Limited and Prysmian Treasury BV, the Rusayl based company said in the Board of Directors report. “The relevant regulatory approvals and the companies’ shareholder approval are being sought for this,” Fabio Romeo, Chairman, Oman Cables Industry (SAOG), said. OCI, meanwhile, recorded gross earnings by the parent company of RO 200.3 million for the financial year ended December 31, 2016, compared to RO 231.5 million in 2015.  Group sales totalled RO 228.6 million last year, down from RO 283.5 million in 2015. The decline was largely attributable to the 15 per cent drop in copper prices in comparison with corresponding trends in 2015, the company said. “Volumes sold by the parent company in 2016 were equal to 2015,” Fabio Romeo said in the Board of Directors report.  “The effect of the oil price levels is having an impact on the business sectors and the pressure on the sales value was felt in all markets and across the different segments. Several electrical utilities in and outside of Oman delayed the payments,” the report further stated. Net profit of the parent company for the year 2016 was RO 15.4 million as compared to RO 18.2 million in 2015, a decrease of 15.2 per cent. Group net profit was RO 15.3 million compared to RO 18.5 million in 2015, a decrease of 17.6 per cent. Turmoil in the global aluminium market led to a “challenging year” for Sohar-based Oman Aluminium Processing Industries LLC (OAPIL), a joint venture between Oman Cables with 51 per cent share and Takamul Investment Company of Oman Oil with a 49 per cent share. Sales revenues dropped strongly and profitability was under severe pressure leading to a large drop in net profit, it said.