Oman Cables Industry Co said its net profit increased 41.8 per cent in 2013 to RO16.9 million ($43.7 million), compared to RO11.9 million the previous year, said a report.

The increase was credited to higher sales volume and a reduction in production costs, said the Muscat Daily report.

The total sales increased to RO306.1 million in 2013, a growth of 19 per cent compared with the previous year's sales of RO257.2 million, the company was quoted as saying in its filing to the Muscat Securities Market (MSM).

"Sales increased in spite of a lower average copper rate in comparison with 2012, and on the back of the continuous strategic development of the company focusing on revenues, its entry into new markets, and on prioritising profitable projects," it said.

The company also further pointed out that its project to enhance the production capacity of multi-core cables to meet the growing demand of customers in the local and international markets has been successfully completed within budget.

"With infrastructure spending and continued investment in the oil and gas sector in the region, the management believes that the demand for cables will continue to grow," the company said in the report.

The board of directors has recommended a cash dividend of 88bz per share of 100bz face value, to be approved by shareholders at the annual general meeting.