Al Jazeera Steel set to open new rebar facility

23/03/2015 07:17 AST

Al Jazeera Steel Products Company has completed building a new rebar production line, which is already in trial production. It is expected to start commercial production in the second quarter of 2015.

This is expected to lead to enhancing the company's revenues and diversifying its product offerings. This will also increase the capacity utilisation of the merchant bar mill from its current 35 per cent utilisation, offering significant growth potential.

Al Jazeera Steel Products Company, which is 51 per cent owned by Global Buyout Fund and listed on Muscat Securities Market, will distribute 22 per cent in cash dividend for the year ended 2014, the largest dividend payment in the history of the company.

Al Jazeera achieved record net profit of $13.5 million in 2014 as compared to $11.8 million in 2013, a growth by 14.4 per cent. Revenues have also grown by 7.9 per cent from $229 million in 2013 to $247 million in 2014, said a Global Investment House release.

Financial position

Al Jazeera has also a strong financial position with total assets of $194 million compared to $180 million in 2013, growing by 7.7 per cent, whereas its shareholders' equity stood at $103.6 million in 2014 compared to $96.6 million in 2013, a growth of 7.3 per cent.

Although steel markets have endured significant challenges in 2014 especially with the massive drop in oil prices during the fourth quarter of 2014 and the volatile steel prices associated with it, Al Jazeera's team was capable enough to confront these challenges effectively.

"Al Jazeera has achieved, for the fifth consecutive year, tremendous growth and performance backed by a relatively stable demand and a strong order book. These outstanding results could not have been achieved without the efficient purchasing and inventory management, cautiousness of the management team and their exceptional performance in these challenging market environments," said Sulaiman Al Rubaie, chairman of Al Jazeera Steel Products Company, representing Global Buyout Fund.

"Al Jazeera's strong balance sheet will reinforce its ability to implement its strategy in enhancing its penetration in the Saudi Arabia market as well as North America. This will ensure continuous growth and revenue diversification and thus reducing operational risks especially in light of the challenging steel market conditions," he added.

Times of Oman