Al Jazeera Steel reports higher standalone profit in H1 2026

Al Jazeera Steel Products Co. SAOG reported a 13pct increase in standalone net profit for the first half of 2026, while consolidated group profit declined by 6pct, reflecting weaker sales volumes and challenging market conditions.

The standalone results cover the company's operations in Oman, where it operates tube and merchant bar mills. The consolidated group figures also include its wholly owned Saudi subsidiary, which imports and sells steel products manufactured by the Omani parent company, and its 80pct-owned UAE subsidiary, which is developing a medium section mill in Khalifa Economic Zone Abu Dhabi (KEZAD).

The company's standalone net profit rose to OMR 4.84 mln (USD 12.7 mln) in January-June 2026, compared with OMR 4.28 mln in the corresponding period last year. However, consolidated net profit fell to OMR 3.88 mln (USD 10.2 mln) from OMR 4.12 mln.

Standalone sales volumes decreased by 3pct YoY to 253,788 tons, while sales value declined by 2pct to OMR 74.62 mln (USD 196.4 mln). At group level, sales volumes fell by 1pct to 256,985 tons, with sales value decreasing by 1pct to OMR 75.61 mln (USD 199 mln).

The company attributed the improvement in standalone profitability to its focus on reliable supply chains, flexible procurement strategies, cost optimization and a greater emphasis on higher-margin products.

Al Jazeera Steel said the business environment has remained challenging since the escalation of the Middle East conflict in late February, with disruptions to supply chains, moderated demand, higher logistics costs and continued geopolitical uncertainty. The company has responded by developing alternative supply chains, establishing new partnerships and adapting procurement and sales strategies.

While near-term conditions remain uncertain, Al Jazeera Steel expects the region to remain a long-term driver of steel consumption, supported by projects announced and under development. It also plans to continue expanding its higher-value product offering for the oil and gas sector.

Al Jazeera Steel Products Co. SAOG is a Middle Eastern manufacturer of tubular products, merchant sections and rebars. Its facilities include four tube-making lines with a combined capacity of 300,000 tons per annum and a merchant bar mill with a capacity of 300,000 tons per annum. The company exports to more than 40 countries across the Middle East, Africa, Europe and North America. It has also expanded its manufacturing footprint with a new production facility at KEZAD in the UAE.

1 USD / 0.38 OMR