(MENAFN- Muscat Daily) Oman Fisheries Co posted its third consecutive year of losses with its deficit widening to RO1.75mn for the financial year ended March 31 2015.
The company has registered a loss of RO711021 in the previous fiscal.
In its yearly report submitted to the Muscat Securities Market on Sunday Oman's largest fishing company said it has launched a three-year strategic plan to cut its losses by focusing on its core strengths.
The company's consolidated turnover however jumped 26 per cent to RO23.89mn in the recent financial year from RO19mn a year earlier.
Oman Fisheries said it achieved record sales volumes but competition in its export markets forced it to focus on some low-value sales under contract basis. 'After three successful years of incremental operating profit this is consequently the third time the company is facing challenges in terms of ending up with an operational loss.'
The tight competition in export markets being an obstacle to increasing prices as against an increase in procurement cost and operational expenses is one of the major reasons for ending up in losses the company said.
Oman Fisheries has launched a three-year strategic plan to focus on its core strengths such as marketing and quality while deregulating other activities in order to reduce costs and improve the bottom line. The company plans to focus solely on procurement marketing and quality control while leasing out processing plants.
'The importance of quality in the processes and of the products has been emphasised as one of the primary goals under the new business plan. In order to continue achieving target operating profit in the subsequent years we continue to concentrate on better product mix and high-margin species through the implementation of our new strategic plan.'
The Oman Fisheries board has decided to appoint a specialist to analyse the company's situation and to review its previous five-year strategic plan.
The company plans to go ahead with its pilot project on seaweed farming on government allocated areas. 'The company has initiated viability studies with the government for identification of appropriate land. We are in the process of technical and financial feasibility studies' Oman Fisheries added.
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