Omani-based Al Jazeera Steel doubles revenues in Q1 2010

Wednesday, 19 May 2010 10:01:48 (GMT+3)   |  
       

Global Buyout Fund announced on May 18 that Oman-based steelmaker Al Jazeera Steel Products Company, a listed company on Muscat Securities Market and in which the fund owns a 51 percent stake, generated revenues of OMR 15.4 million (USD 39.8 million) in the first quarter of 2010, as compared to OMR 7.3 million (USD 18.9 million) for the same period last year. This growth in revenues was supported by the increase in regional and global demand for steel products. 

The company's total production including its pipe mill and merchant bar mill surged to 56,023 metric tons in the first quarter of 2010, as compared to 20,703 metric tons in the corresponding period last year, recording a growth of 170 percent.

Commenting on the results, Al Jazeera Steel's chairman Sulaiman M. Al Rubaie stated, "Despite the difficult economic conditions, Al Jazeera was able to report a net profit of OMR 551,551 (USD 1.4 million) in the first quarter of 2010, as compared to a loss of OMR 2.9 million (USD 7.5 million) for Q1 2009. The executive management of the company adopted a balanced policy to overcome fluctuations in steel prices." 

In addition, Al Jazeera Steel CEO Dr. Bhaskar Dutta stated, "GCC finance ministers' recent approval for the abolition of customs tariffs on only rebar steel items and cement within the GCC will help stabilize steel prices, protect national products, prevent foreign dumping of other steel products and improve margins for regional steel companies."  Dr. Dutta went on to say, "The company follows a conservative inventory purchasing policy for HRC and billets in an effort to avoid any price fluctuations and to generate optimal performance results."  Dr. Dutta also praised the Omani government for its support to local industry players.

With regard to the company's expected performance in 2010, Dr Dutta added, "Given the addition of the merchant bar mill facility, along with Al Jazeera's API certification and the expansion of sales in Saudi Arabia and North America, we expect the company to further increase its production levels, keeping in mind that the merchant bar mill is currently operating at 25 percent of its capacity, and is expected to increase to 50 percent by year end and cover a broader spectrum of products."