• Al Jazeera Steel continues to break new performance records achieving a net income of USD 12.2 million for the 9 months of 2014
    Posted: Tuesday, October 28, 2014

Global Investment House (KPSC), the fund manager of the Global Buyout Fund, commented on the outstanding results reported by the fund's portfolio company Al Jazeera Steel Products Company ("Al Jazeera Steel"), a company 51% owned by the fund and listed on Muscat Securities Market.

Al Jazeera Steel reported outstanding results in the first 9 month of 2014, generating a net income of USD 12.2 million, 3.1% higher than the entire net income of the year 2013 and 29.2% higher than that of the similar nine-month period of 2013. Revenues for the nine-month period grew by 8.2%, jumping from USD 175.4 million in 2013 to USD 190.0 million in 2014.

Al Jazeera Steel has a strong balance sheet with an asset base of USD 207.8 million as on 30 September 2014, compared to USD 179.7 million as at the end of 2013, a growth of 15.6%. Shareholders' equity increased by 5.9% from USD 96.7 million in 2013 to USD 102.4 million as on 30 September 2014.

Although steel markets have been extremely challenging in 2014 with volatile prices and unpredictable trends, the management team was strong enough to confront all these challenges through the efficient management of both purchases and inventory as well as the close monitoring of market dynamics.

Mr. Sulaiman Mohammed Al Rubaie, Chairman of Al Jazeera Steel Products Company representing Global Buyout Fund said: "We are proud to have another successful quarter for Al Jazeera Steel and its stakeholders. The company has achieved, for the third consecutive quarter this year, an outstanding performance breaking new annual records with tremendous growth potential backed by a relatively stable demand and a strong order book. These exceptional results could not have been achieved without the expert team of Al Jazeera Steel"

Regarding the Company's future strategy, Mr. Al Rubaie stated: "Al Jazeera Steel's strong balance sheet will support its future growth plans and is expected to positively impact its business operations. We are now considering more growth opportunities with special focus on the Saudi market and are also planning to expand our North American markets. The aim of these growth initiatives is to grow the business at a faster pace as well as to diversify revenue sources, strengthening the overall performance and minimizing operational risks given the currently challenging steel markets."

Furthermore, the Merchant Bar Mill ("MBM") is expected to operate around the clock starting 2015, especially with the commissioning of the new rebar production line, which has already started producing hot trials. This is expected to further improve the performance going forward as it will increase the capacity utilization of the MBM unit, which currently stands at around 35% of its rated capacity, leaving huge growth potential.

Mr. Al Rubaie concluded by thanking the Omani government for all the support extended to the industrial sector, foreign investors and to Al Jazeera Steel. He also commended the team of Al Jazeera Steel for such a great performance this quarter.

It is worth noting that since the Global Buyout Fund's team took control of the Company seven years ago, Al Jazeera Steel has been recording continuous growth in all aspects. Over this period, the Company witnessed the turnaround into profitability in 2010 and exceptional growth in the years after. The private equity team at Global has played a vital role in realizing the turnaround strategy of Al Jazeera Steel and helped its management team in opening up new growth venues to become one of the most successful turnaround stories in the GCC and is an example of Global's proven transactional experience in assisting companies in planning and leading turnarounds.



distributed by