National Aluminium Products Company (Napco) reported a loss of RO202,486 for 2005 despite higher sales in volume and value.

The company had made a profit of RO237,570 in the previous year
Napco chairman Shabir Moosa Al Yousef attributed the downturn in net income to a hardening of all base metal prices and a significant increase in supply over demand.
Al Yousef said aluminium prices shot up by 22 per cent during the year, which was also characterised by severe fluctuations, and the company did not pass on the price increases to the end customer.
“The company has reviewed its overall strategies, especially the marketing strategy and started implementing them in the second half of the year which enabled the company to achieve a turnaround by the last quarter,” said the chairman.
“We believe the company will be in a better position during year 2006 to significantly improve on the previous year’s results as also to take advantage of any and all favourable factors that may arise during the year.”
The company manufactured and dispatched 13,260 tonnes of aluminium extrusions during 2005, which was a 21.86 rise over the previous year’s figure. Sales revenues were RO14.9 million, a 32.4 per cent increase over 2004.
The company continued to service the domestic market effectively and retained its market leadership, said Al Yousef. He added that the emphasis on non-GCC markets had continued and sales to Europe increased by 35.4 per cent.  “Apart from better prices, European markets offer better protection to the extruder since prices are normally LME (London Metal Exchange) plus and therefore the risks associated with volatility in the case of raw materials are reduced,” Al Yousef said.