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

Oman's Al Jazeera Steel Products recorded $119m in H1 2017 sales [representational image].
Oman's Al Jazeera Steel Products recorded $119m in H1 2017 sales [representational image].

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.

READ: Egypt imposes import tariffs on steel from three countries

'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."

READ: 'Stainless steel not made for construction'

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.

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020