Oman-based steelmaker Al Jazeera Steel has announced its financial and operational results for 2022.
The company registered a net profit of OMR 3.14 million ($8.16 million) in the given year, down 65.8 percent year on year, while its revenues totaled OMR 149.26 million ($387.71 million), down by 0.7 percent year on year amid lower demand offset by higher steel prices at the beginning of the year.
In 2022, Al Jazeera Steel’s production was at 360,123 mt, decreasing by 10.2 percent, while its sales totaled 384,391 mt, down by 4.5 percent, both year on year.
The company stated that the year started on a strong note on the demand front with the easing of the global pandemic situation and projects starting to move again in the GCC. However, as the year progressed, there were unexpected challenges with raging inflation and rising interest rates leading to liquidity issues. The imposition of the import duties by Saudi Arabia on supplies from Oman in the second quarter of 2022 negatively impacted Al Jazeera Steel’s profitability.
In addition, the upgrades of the company’s merchant bar mill and tube mills were implemented as planned. The company carried out its first break bulk shipment to the MENA region in 2022, thereby increasing its product presence beyond the GCC.