Al Jazeera Steel Products Co SAOG has reported a hefty 33 per cent increase in net profit for the six months to June 30, 2012. Net earnings climbed to RO 2.792 million for the first half of this year, versus RO 2.100 million for the corresponding period of 2011.

Commenting on the company’s financial performance, Sulaiman Mohammed Shaheen al Rubaie, Chairman, said: “The global economic adversity somehow has not had a great impact on this region and your Company was able to make a growth of 16 per cent in revenue and 33 per cent in net profit.

This was made possible because of the timely sourcing of raw material and aggressive marketing done by the management. The finance charges have come down sizably through better negotiations with banks, thus reducing finance cost and achieving better margins.” A 16 per cent increase in turnover generated total earnings of RO 53.960 million during the first half of this year, from RO 46.703 million during the same period last year. Total output also was higher at 154,818 metric tonnes this year, from 136,652 MT during the first half of last year, entailing an increase of 13 per cent. In quantity terms, sales also rose 16 per cent to 158,661 MT this year, from 136,601 MT during the corresponding period of last year.

“Efficient inventory management and better raw material sourcing by the Management resulted in attaining attractive profit levels, setting new records for both the plants in terms of production and profitability. The GCC and USA markets were buoyant and thus we could sell the additional tonnages,” the Chairman stated. Significantly, the anti-dumping duty imposed by the United States government will have no significant impact on committed exports to that US market, he said.

“Though we have been imposed with anti-dumping duty based on the preliminary investigation report by the Department of Commerce, USA, we are still able to continue our dispatches as our customers have agreed to bear part of the increase in the price which was only possible because of our reputation of excellent quality and unparalleled commitment with these customers over a decade.” Al Rubaie stated.

Al Jazeera Steel, he said, is also planning to ramp out output from its Merchant Bar Mill (MBM), which commenced commercial production in the fourth quarter of 2009. Output has since climbed to 80 per cent of production capacity with a 12-hour operation.

“We plan to go for 24 hours operation (two shifts) for the MBM in the near future. The development of the full product spectrum for MBM Products was instrumental in increasing the volumes.”