(MENAFN Press) 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 20% in cash dividends for the year 2013, the largest dividend payment in the history of the Company
Although Al Jazeera's revenues dropped slightly to OMR 88.3 million in 2013 as compared to OMR 98.3 million in 2012, the Company continues to achieve record profits in the highly challenging steel market. Al Jazeera was able to achieve outstanding profits for the fourth consecutive year with the highest profits in the history of the Company being made in 2013 with OMR 4.6 million in net profits (OMR 0.036/share), compared to OMR 3.4 million (OMR 0.027/share) in 2012; an outstanding 33% increase. This excellent performance is mainly attributed to the efficient management of purchases and inventory in light of volatile steel prices and the dumping of Chinese and Turkish products. It is worth mention that the Company has achieved a CAGR of 22% in revenues for the period 2009-2013 and a CAGR of 34% in net profits for the period 2010-2013.
Mr. Sulaiman Al Rubaie, Chairman of Al-Jazeera Steel Products Company representing Global Buyout Fund said: "We are proud to have another successful year for Al Jazeera and its stakeholders. Al Jazeera has achieved, for the fourth consecutive year, tremendous growth and performance backed by a relatively stable demand and a strong order book. These outstanding results could not have been achieved without the efficient purchasing and inventory management, cautiousness of the management team and their exceptional performance in these challenging market environments"
Mr. Al Rubaie added: "The GBF team has played a major role in realizing the Company's turnaround strategy and growing the business 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 has helped the Company recover the losses incurred in 2009, restructured the Company and paved the way for unprecedented profitability"
Regarding the Company's future strategy, Mr. Al Rubaie stated: "The Company is now in the process of setting up the Rebar facility which will be operational in September of this year, in addition to assessing other growth opportunities in the region aiming at diversifying revenue sources, strengthening the overall performance and minimizing operational risks given the currently challenging markets. With the opening of the Rebar facility by the end of the year, expanding into the Saudi market through the JV with our Saudi partners and by operating on two shifts in the MBM factory, the performance of Al Jazeera is expected to flourish in light of the new developments and with the new initiatives which would benefit all shareholders going forward"
Mr. Al Rubaie concluded by thanking the Omani government for all the support extended to the industrial sector, foreign investors and to Al Jazeera in all fronts.
It is worth noting that since the GBF team took control of the Company six years ago, Al Jazeera has been recording continuous growth in all aspects. Over this period, the Company witnessed the turnaround into profitability in 2010 and exceptional growth in 2011, 2012 and 2013.