(MENAFN- Muscat Daily) Muscat- Nama Group, a conglomerate of companies engaged in production, procurement, distribution and transmission of electricity in the sultanate, reported total revenue of around RO1.12bn for 2016, an increase of around two per cent compared to previous year revenue.
The group's net profit, however, decreased to RO89.5mn in 2016 compared to previous year.
According to Nama Group officials, net profit decreased due to a number of reasons but two factors contributed maximum to profit decline. The group had received a one time payment in 2015, which ballooned its net profit for that year. The company also took loans for financing various projects and its interest cost impacted net profit in 2016.
Speaking at the group's annual press conference on Tuesday, Eng Omar al Wahaibi, chief executive officer of Nama Group, said: 'Electricity companies are not allowed to take large profit margins at the expense of consumers. Our main focus is on supplying uninterrupted electricity to consumers.'
Wahaibi said, 'The group continued to record a growth in 2016 by enhancing the assets of transmission and distribution networks. We have increased our reach covering more customers and new geographic areas. The number of customers stood at 1,074,608 in 2016 which is an increase of seven per cent compared with 2015 figures.'
Nama Group last year invested RO448mn in the electricity distribution and transmission networks compared to total investment of RO394mn in 2015.
The group's financing project, 'Lamar' was launched in 2014 to provide long-term and short-term financing to the group. The group also completed phase one of the Lamar Project and raised US$1bn in bonds from international markets for OETC's long-term capital expenditure plans. In 2016, the group further raised RO127mn for Majan Electricity Co, and RO100mn for Dhofar Power Co.
In 2016, the group launched a tender for the appointment of consultant for the second phase of the long-term financing project of RO750mn to finance the needs of all companies which benefited from funding in the first phase.
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