Oman steel giant records 31% hike in H1 2017 sales
A downward price correction in China "had a direct impact" on Al Jazeera Steel Products' bottom line in H1 2017, the company's chairman said
Omani steel tube and structural products manufacturer, Al Jazeera Steel Products, reported a 12% hike in year-on-year (YoY) sales volumes during the second quarter of 2017.
The group's sales in H1 2017 amounted to $119.4m (OMR46m), 31% higher than H1 2016's sales worth $91.7m (OMR35.3m).
In a statement dated 23 July, 2017, filed on the Muscat bourse, chairman Sulaiman Mohammed Shaheen Al-Rubaie, said the company's Q2 sales growth came on the back of its amplified marketing efforts.
Al-Rubaie continued: "The second quarter was a challenging period as anticipated, due to various reasons.
'The summer months, coupled with reduced working towards the end of the quarter, due to the Holy Month of Ramadan, and various events in the region, led to lower incremental demand."
A downward price correction in China also put pressure on the prices of finished products both, regionally and globally, which Al-Rubaie said "had a direct impact" on the firm's bottom line.
He continued: "Even with a competitive environment, coupled with lower demand growth, the company managed to increase sales volumes and maintain profitability.
"This was achieved predominantly due to cost optimisation and diversification in product mix."
Al-Rubaie said Al Jazeera also acquired the stake of its joint venture (JV) partner in Saudi Arabia during Q2 2017.
"This will now lead to better operational control and realise the purpose it was conceived for," he added.
"This move is expected to help the company increase its penetration into the Saudi market in the coming years."
The company's Omanisation rate currently stands at 36%, Al-Rubaie said.