Oman’s listed companies post 4% growth

01/12/2010 00:00 AST

Oman’s MSM-listed companies have posted a modest 4.41 per cent growth in total net profit at RO475.21 million for the first nine months of 2010.

This is against combined net earnings of RO455.14 million posted by these companies for the same period in 2009, according to a research note released by the Global Investment House.

The survey was conducted among 58 companies listed on Muscat Securities Market’s (MSM) regular market and comprises eight sectors — banking, investment, cement, telecommunications, industry, services, petrochemical and insurance.

“None of these sectors witnessed net losses during the nine-month period of 2010. Out of these eight sectors, three witnessed decline in profits, while others managed to increase its nine months overall results,” the report said.

Global Investment said that industrial sector performed well, while the earnings of services and telecomunication players were dismal. Also, a mixed trend witnessed in cement and banking sectors.

Among various sectors, industrial sector’s consolidated net profit soared 33.17 per cent amounting to RO33.92 million from RO25.47 million during the period. Dhofar Cattle Feed witnessed the highest profitability rise among the sector with unprecedented jump amounted to 846.13 per cent reaching RO5.74 million during the first nine months of the year compared to RO0.61 million for the same period last year.

Oman Cables

These gains were mainly attributed to almost 1,394 per cent rise in the realised gains on available for sale investments released from investment fluctuation reserve, reaching RO5.58 million compared to RO0.4 million last year.

Heavyweight Oman Cables Industry witnessed a huge growth of 70.98 per cent with net profit amounted to RO5.92 million in the first nine month period, compared to RO3.46 million reported for the same period last year. “These massive gains were mainly attributed to the huge drop in finance costs and the rise in volume and commodity prices of the company, which increased revenues by 24.7 per cent during the nine months period.”

As far as the cement sector is conerned, Raysut Cement, the largest cement company in Oman, reported total net profit of RO19.03 million, which is less by 21.28 per cent compared to the same period last year.

Raysut Cement

Raysut Cement’s revenues declined due to growing competition from external markets such as UAE and Saudi Arabia, which reduced sales volume and the company’s realisation in domestic and export markets.

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Times of Oman