Al Jazeera Steel Posts Increase in Profits for 2011

Profits Soar Eighty-One Percent

Chairman of Al Jazeera Steel Products Co SAOG, Sulaiman Mohamed Shaheen al Rubaie announced impressive results for the company’s net profits during the nine months from January until September 2011. The company, headquartered in Sohar, Oman posted an 81% net profit after taxes, reaching RO 2.751 million from RO 1.523 million during the same time period the previous year.

Better Performance Due to Intelligent Strategies

Sulaiman Mohamed Shaheen al Rubaie

Announcing the results al Rubaie added,

“Your Company has also adopted a policy of working with low inventory so as to minimize risks from the volatility. A better management of inventory and emphasis on improving sales realizations 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.”

Efficient MBM Production Key Element

The Chairman further explained Al Jazeera’s startling success. The Merchant Bar Mill (MBM) began producing commercially during the last three months of 2009, yet was able to reach a 70% production capacity level with only 12 hours of operation per day. The company is, however, planning on increasing operations to 24 hours/day in the coming days. Due to Al Jazeera’s ability to develop a broad product base for MBM products this past year was key in establishing high volume sales for the company, according to al Rubaie.