Oman-based steelmaker Al Jazeera Steel Products Company (Al Jazeera) has announced its financial results for 2015, registering a net profit of OMR 1.71 million ($4.45 million) for the given year, decreasing by 67 percent compared to the previous year. In 2015, sales revenues of the company decreased by 27.76 percent year on year to OMR 68.9 million ($178.9 million). The company registered an operating profit of OMR 2.19 million ($5.69 million) in the given period, down 68.4 percent year on year.
In the given year, the company’s capacity utilization of the tube mill division was 52 percent, decreasing from 68 percent in 2014. The tube mill division produced 162,872 mt of pipe, down 20.5 percent year on year, mainly due to the drop in demand in the domestic market as well as in the US market. In the company’s merchant bar mill products division, its rebar output increased by two percent year on year to 122,511 mt. Al Jazeera expects to operate on 24 hours basis in its merchant bar mill products division once the various certifications from different agencies are ready and therefore it expects to produce and sell additional 5,000-7,000 mt of rebar products on a monthly basis. This excess production will lead to 60 percent capacity utilization from the present level of 40 percent.