29 October 2011
MUSCAT -- Al Jazeera Steel Products Co SAOG has reported an impressive 81 per cent in net profit after tax, which climbed to RO 2.751 million for the nine months ended September 30, 2011, versus 1.523 million for the corresponding period in 2010.
Announcing the financial results of the Sohar-based steelmaker, Chairman Sulaiman Mohammed Shaheen al Rubaie commented: "Your company has not only improved its performance in the area of production, compared to the same period last year, but has also kept in control the cost of borrowings, thereby resulting in a healthy balance sheet."
He further said: "Your company has also adopted a policy of working with low inventory so as to minimise risks from the volatility. A better management of inventory and emphasis on improving sales realisations and volume has in turn resulted in an overall better performance even in a market of challenging prices and lower demand. Shorter cycle time and more attractive interest rates helped the Company to reduce the borrowings. Even though the employee cost has gone up by more than a half million riyals, compared to the last corresponding period, the Company has managed to maintain reasonable profits."
Total production rose 35 per cent to 201,090 metric tonnes (MT) this year, from 149,426 MT during the corresponding period last year. Sales also climbed 33 per cent to 198,039 MT this from 149,146 MT last year. Total revenues were higher by 47 per cent to RO 68.410 million during the nine months of this year, from RO 46.562 million for the same period last year. In the third quarter, Al Jazeera Steel produced 61,438MT to steel products, generating revenues of RO 21.7 million and a profit of RO 650k.
The company's Merchant Bar Mill (MBM), which started commercial production in the last quarter of 2009, was able to reach a production capacity level of 70 per cent with twelve hours operation. A ramp up to 24-hours operations is planned in the near future. The development of the full product spectrum for MBM products during this year was instrumental in increasing volumes, the Chairman said.
MUSCAT -- Al Jazeera Steel Products Co SAOG has reported an impressive 81 per cent in net profit after tax, which climbed to RO 2.751 million for the nine months ended September 30, 2011, versus 1.523 million for the corresponding period in 2010.
Announcing the financial results of the Sohar-based steelmaker, Chairman Sulaiman Mohammed Shaheen al Rubaie commented: "Your company has not only improved its performance in the area of production, compared to the same period last year, but has also kept in control the cost of borrowings, thereby resulting in a healthy balance sheet."
He further said: "Your company has also adopted a policy of working with low inventory so as to minimise risks from the volatility. A better management of inventory and emphasis on improving sales realisations and volume has in turn resulted in an overall better performance even in a market of challenging prices and lower demand. Shorter cycle time and more attractive interest rates helped the Company to reduce the borrowings. Even though the employee cost has gone up by more than a half million riyals, compared to the last corresponding period, the Company has managed to maintain reasonable profits."
Total production rose 35 per cent to 201,090 metric tonnes (MT) this year, from 149,426 MT during the corresponding period last year. Sales also climbed 33 per cent to 198,039 MT this from 149,146 MT last year. Total revenues were higher by 47 per cent to RO 68.410 million during the nine months of this year, from RO 46.562 million for the same period last year. In the third quarter, Al Jazeera Steel produced 61,438MT to steel products, generating revenues of RO 21.7 million and a profit of RO 650k.
The company's Merchant Bar Mill (MBM), which started commercial production in the last quarter of 2009, was able to reach a production capacity level of 70 per cent with twelve hours operation. A ramp up to 24-hours operations is planned in the near future. The development of the full product spectrum for MBM products during this year was instrumental in increasing volumes, the Chairman said.
© Oman Daily Observer 2011
