OFO Posts Decrease in its Quarterly Profits

Muscat based optical fiber & cable manufacturing and Engineering company, Oman Fiber Optic Co. (OFO) has posted a 148.35% decrease in its quarterly profits, local news media reports. Profits reached OMR 601,000 ($1.56 million) in the first quarter of 2016, compared to OMR 242,000 ($626,590) in the same quarter of 2015.

OFO recovered its operations from a major fire disaster that literally devastated the Oman fiber cable manufacturer in 2012. The fiber and cable manufacturing facilities, testing laboratories, raw material and cable stockyards were totally burnt and destroyed in the fire accident.

The company management returned to the business by re-establishing the manufacturing and testing facilities in their Rusayl factory. Rosendahl-Nextrom supplied cable manufacturing machines to OFO while fiber drawing facilities have been supplied by one of the leading Japanese optical fiber and preform manufacturers.

OFO is the only manufacturer of optical fibers and cables in the Sultanate of Oman. OFO is one of the five leading manufacturers of optical fiber cables and is the sole fiber manufacturer in the Arab world. The supply of optical fiber cables for domestic use is almost reserved to the OFO and therefore the company enjoys a good armor of protection from price competition from cheaper cable suppliers.

OFO’s returning back to the business was possible due to the long-term vision and strategy of its promoters and the management. The management supported the employees throughout the crisis-hit period.

Total revenues stood at OMR 6.94 million ($18.025 million) in Q1-16, a rise by 61.88% from OMR 4.29 million ($11.14 million) in Q1-15.

Total expenses grew 56.7% to OMR 6.34 ($16.47 million) during the period, compared to OMR 4.05 million ($10.52 million).

Author: Prakash

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