Oman-based steelmaker Al Jazeera Steel Products Company (Al Jazeera) has announced its financial results for the first half of the current year, registering a net profit of OMR 2.62 million ($6.82 million) for the given period, compared to a net profit of OMR 2.02 million recorded in the same period of 2017. In the January-June period this year, sales revenues of the company increased by 37 percent year on year to OMR 63.17 million ($164.3 million). The company recorded an operating profit of OMR 3.55 million ($9.23 million) in the given period, up 37 percent year on year.
In the first half of the current year, Al Jazeera produced 230,138 mt of finished steel, rising by 15 percent, while the company’s finished steel sales increased by 17 percent to 228,943 mt, both year on year.
According to the company’s statement, the first half of the current year was actually a summation of two different kinds of quarters. The first quarter was a stable quarter and demand was more or less at even keel. However, the end of the second quarter saw a substantial slowing of demand due to the triple effect of the summer months, the holidays following Ramadan and trade restrictions, which led to a slowing down of demand and a squeezing of margins.
The company expects the international situation in relation to trade, tariffs and embargoes to remain a concern for the rest of the year; accordingly, it will continue to monitor the situation and constantly strive to mitigate the various impacts of any further developments.