Global
Buyout
Fund ("GBF") announced today that its 51% owned Al
Jazeera Steel Products Company ("Al Jazeera"), which is a
listed company on Muscat Securities Market, will distribute
15% in cash for the year 2011, the largest dividend payment
in the history of the Company.
In 2011, the company continued to report record results for
the second consecutive year. It has reported a net income of
OMR 3.0 million in 2011 (OMR 0.024 per share), a 59% increase
over 2010 profits which stood at OMR 1.9 million in 2010 (OMR
0.015 per share). Revenues jumped 40% from OMR 64.9 million
in 2010 to OMR 91.1 million in 2011.
Mr. Rajiv Nakani, Managing Partner at Global Capital Management said, "The GBF team has played a major role in realizing the Company's turnaround strategy through its tight supervision in the implementation phase, opening up new areas for development and strengthening the management team over the last several years."
He added, "The GBF team assisted the management team in creating a comprehensive budgeting and monitoring process, systemizing and organizing reporting standards and establishment of various committees from within the Board to ensure streamlined operations."
Mr. Sulaiman Al Rubaie, Chairman of Al Jazeera Steel, representing the Global Buyout Fund, commented on the results "We are proud to have another successful year for Al Jazeera and its stakeholders. These results are supported by relatively stable demand, a strong order book and improved contribution from the Merchant Bar Mill ("MBM"). Furthermore, these outstanding results could not have been achieved without the efficient inventory management, cautiousness of the management team and their exceptional performance in these challenging market environments."
Mr. Al Rubaie added: "Al Jazeera management managed to reduce financing costs in 2011 which reflected positively on its performance and is currently optimizing its capital structure in order to achieve better results. The performance of MBM improved significantly compared to last year reaching the breakeven point in 2011."
It is worth noting that since the GBF team took control of
the company four years ago, Al-Jazeera has been recording
continuous growth in all aspects. Over this period, the
company has recorded a compounded annual growth rate of
19.65% in revenues, witnessed the turnaround into
profitability in 2010 and growth in 2011 in addition to
record high cash dividends in 2010 and 2011. During this
period, the management, with the help of the GBF team, has
followed an expansion strategy which started in 2009 by
operating the newly developed MBM plant and penetrating new
markets such as North America amongst others.
distributed by | This press release was issued by Global Investment House KSCC and was initially posted at http://www.globalinv.net/contentdisp.asp?PageId=271&nid=585 . It was distributed, unedited and unaltered, by noodls on 2012-03-27 12:37:42 PM. The issuer is solely responsible for the accuracy of the information contained therein. |