Message from Chairman
In 2022, we were able to deliver outstanding results, with a remarkable 24% increase in net profit compared to the previous year. This growth was primarily fueled by higher revenues, driven by a notable 14% increase in sales volumes, achieved through our enhanced production levels.
One significant milestone was the reactivation of our DR-2 facility, a larger unit that was previously idle. By bringing it back into operation, we gained greater operational flexibility and improved output and efficiencies. However, it’s also worth noting that average selling prices experienced a marginal decline of 4% due to softened domestic demand and a slowdown in international steel prices experienced in the second half of the year. Despite this, we managed to redirect most of our volumes to international markets, where although margins tended to be comparatively lower, we were able to maintain profits.
Furthermore 2022 marked the development of our refreshed corporate strategy, which centres around creating a more sustainable and environmentally friendly product portfolio. This strategy aligns with our newly published Sustainability Roadmap. Recognising the current oversupply in domestic markets, we acknowledge the need to forge a new value proposition based on producing sustainable steel, especially given that such an approach opens opportunities in international markets, particularly in Europe and other developed countries. Additionally, our alignment with the principles outlined in the Responsible Steel methodology further supports our future expansion efforts within our current low Carbon intermediate product offering.
Throughout 2022, we dedicated ourselves to the development of our Sustainability Roadmap. Its formation was guided by ourunwavering commitment to innovation, as we strive to revolutionise steelmaking practices by integrating environmentally friendly technologies and processes and embrace efficiencies thereby reducing waste. We are resolute in reducing our environmental footprint and maintaining our position as a responsible steel supplier. Ensuring the health, safety, and well-being of our employees, contractors, and stakeholders is of utmost importance to us. Our workforce is invaluable, and we continue to invest in their development so as to equip them with the necessary skills and knowledge for success in an ever-changing landscape. Moreover, our commitment to sustainability extends beyond our organisational boundaries. We actively engage with and empower the local community, recognising the significance of fostering strong relationships and creating a positive social impact.
Sustainability is not a destination but an ongoing journey that continuously drives us year after year. In the year ahead, we will continue to allocate our resources and maintain an unwavering commitment to Building a Sustainable Future for Qatar.
Our impressive growth in 2022, which cumulated in a remarkable 28% increase in the Economic Value distributed among all our valued stakeholders.
2022 marked the development of our refreshed corporate strategy, which centres around creating a more sustainable and environmentally friendly product portfolio.
Our workforce is invaluable, and we continue to invest in their development so as to equip them with the necessary skills and knowledge for success in an ever-changing landscape.
Saad Rashid Al-Muhannadi