Malaysia-based steelmaker Ann Joo Resources (AJR) has announced its financial results for the third quarter and first nine months of 2022.
Accordingly, the company has posted a net loss of MYR 133.71 million ($30.32 million) for the third quarter, compared to a net profit of MYR 69.08 million in the corresponding period of 2021. AJR’s sales revenues in the given quarter totaled MYR 760.78 million ($172.55 million), increasing by 87.5 percent year on year.
AJR recorded a net loss of MYR 66.69 million ($15.13 million) for the first nine months of 2022, compared to a net profit of MYR 226.39 million in the first nine months of 2021. AJR’s sales revenues in the given period totaled MYR 2.24 billion ($508.06 million), rising by 35.2 percent year on year.
According to the company’s statement, the global steel market is on the verge of a downturn amid extraordinarily high levels of uncertainty brought on by China’s steel demand deceleration, raw material price volatility, ongoing supply chain disruptions and prolonged geopolitical tensions. High energy prices and rising interest rates also lead to a slackening in steel-consuming sectors, which in turn contributes to steel price weakness.
AJR stated that domestic steel demand is expected to remain weak on a lack of mega infrastructure projects. To offset the weak demand in the local market, the company stated that it will continue to emphasize exports to regional markets.