1Q16 results highlights: Net income – OMR4.66 million, -2% Y-o-Y, -15% Q-o-Q, +17% EFGe; Revenue – OMR61.5 million, -16% Y-o-Y, -16% Q-o-Q, -4% versus EFGe   Oman Cables (OC) has released its 1Q2016 headline results. Consolidated earnings after minority interest came in at OMR4.66 million (-2% Y-o-Y, -15% Q-o-Q), coming in above our estimate of OMR4.0 million (+17%). Even though the full details are not yet available, we believe stronger-than-estimated margins (led by high margin product sales mix) likely led to the earnings beat. The company reported consolidated revenue of OMR61.5 million (-16% Y-o-Y, -16% Q-o-Q), 4% below our estimate of OMR63.8 million. Segment wise results will only be available once the full financials are out   Our view: A resilient set of consolidated numbers, despite being challenged by a weak business environment and volatile commodity prices, and this supports our positive view on the company. We like Oman cables as i) we expect it to benefit from the strong investments in the power sector regionally in the medium term; and ii) its strong association with its parent company, Prysmian, which could support OC’s medium to long term growth through potential niche product diversification. We conservatively estimated 2016 earnings to drop 19% Y-o-Y as we expect short-term challenges from commodity prices and any slowdown in infrastructure spending in the region to be an overhang on margins; but will likely revisit our estimates for 2016 post the release of full financials.   The shares have been on an uptrend recently, +11% since our last update and are now trading at a 2016e P/E of 10.0x and 5.0% dividend yield. (Company, Sameer Kattiparambil, Wafaa Baddour, CFA)