Al Jazeera Steel net jumps 29pc to $12.2m

29/10/2014 06:51 AST

Global Investment House (KPSC), the fund manager of the Global Buyout Fund, yesterday lauded the "outstanding results" reported by the fund's portfolio company Al Jazeera Steel Products Company, a company 51 per cent owned by the fund and listed on Muscat Securities Market.

Al Jazeera Steel reported outstanding results in the first 9 month of 2014, generating a net income of $12.2 million, 3.1 per cent higher than the entire net income of the year 2013 and 29.2 per cent higher than that of the similar nine-month period of 2013. Revenues for the nine-month period grew by 8.2 per cent, jumping from $175.4 million in 2013 to $190.0 million in 2014.

Al Jazeera Steel has a strong balance sheet with an asset base of $207.8 million as on September 30, 2014, compared to $179.7 million as at the end of 2013, a growth of 15.6 per cent. Shareholders' equity increased by 5.9 per cent from $96.7 million in 2013 to $102.4 million as on September 30, 2014.

Although steel markets have been extremely challenging in 2014 with volatile prices and unpredictable trends, the management team was strong enough to confront all these challenges through the efficient management of both purchases and inventory as well as the close monitoring of market dynamics.

Sulaiman Mohammed al Rubaie, Chairman of Al Jazeera Steel Products Company representing Global Buyout Fund said: "We are proud to have another successful quarter for Al Jazeera Steel and its stakeholders.

The company has achieved, for the third consecutive quarter this year, an outstanding performance breaking new annual records with tremendous growth potential backed by a relatively stable demand and a strong order book. These exceptional results could not have been achieved without the expert team of Al Jazeera Steel"

Regarding the Company's future strategy, Al Rubaie stated: "Al Jazeera Steel's strong balance sheet will support its future growth plans and is expected to positively impact its business operations. We are now considering more growth opportunities with special focus on the Saudi market and are also planning to expand our North American markets. The aim of these growth initiatives is to grow the business at a faster pace as well as to diversify revenue sources, strengthening the overall performance and minimising operational risks given the currently challenging steel markets."

Furthermore, the Merchant Bar Mill is expected to operate around the clock starting 2015, especially with the commissioning of the new rebar production line, which has already started producing hot trials. This is expected to further improve the performance going forward as it will increase the capacity utilisation of the MBM unit, which currently stands at around 35 per cent of its rated capacity, leaving huge growth potential.

Al Rubaie concluded by thanking the Omani government for all the support extended to the industrial sector, foreign investors and to Al Jazeera Steel. He also commended the team of Al Jazeera Steel for such a great performance this quarter.

Oman Daily Observer