Aluminium Bahrain (Alba) reported substantially lower net profit for 2015 driven primarily by lower LME prices and a one-time charge related to an early retirement scheme (ERS).

Net income was BD59.9 million ($159.5 million), down 38 per cent compared with 2014 while the company reported a net loss of BD15.8 million in Q4 against a net profit of BD34.6 million in the same quarter of 2014 which the company attributed to the one-time charge of the ERS.

The ERS programme was designed to optimise overall manpower levels and also provide upward mobility for the younger generation of employees. Net profit, excluding the one-off costs relating to early retirement payout, stood at BD78.2 million in 2015 and at BD1.9 million in Q4 2015.

The board recommended a final 2015 dividend of BD7.8 million in addition to the interim dividend already paid in September 2015 of BD7.8 million.

Sales in 2015 were BD766.7 million against BD821.6 million in the previous year, down 7 per cent, which the company said was due to the collapse of all-in prices. Q4 sales were BD176.3 million, down 21 per cent compared with the same period in 2014.

Other highlights of 2015 were: production topped 960,643 tonnes, up 3.1 per cent year on year; the two-year Project Titan cost improvement programme was completed with savings of $148 per tonne against a target  of $150 per tonne; value-added sales averaged 64 per cent of total shipments versus 66 per cent in 2014; natural gas supplies were secured for the Line 6 expansion; North American sales jumped to 9 per cent up from 5 per cent in 2014; safety continued to be a top priority, the company winning numerous international awards during 2015.

Sheikh Daij: great year for safety and production

Chairman of Alba’s board of directors Sheikh Daij bin Salman Bin Daij Al Khalifa remarked: “2015 was another great year in terms of safety and production with Alba producing more than 960,000 tonnes. Alba’s underlying performance was very strong despite difficult market conditions.”

Sheikh Daij said the company is focusing on accelerating the Line 6 project’s early works to stay on schedule to produce the first hot metal by early 2019.

CEO Tim Murray commented: “Despite the collapse of all-in-prices, Alba continued to outpace the industry in terms of financial performance. 2016 will be a challenging year but we will build on the success of Project Titan and the success of the ERS programme which have helped us to optimise our cost structure for the difficult road ahead.”

ALBA ON THE MOVE

Alba announced it had improved on the industry benchmark of 5 per cent training hours of the total man hours in 2015, the third time in a row this has happened.

Murray paid a recent visit to the company’s Training Department, accompanied by training manager Rawdha Al Aradi. He met with the trainees and highlighted all the distinctive accomplishments of Alba in 2015, especially in the field of skills development. He encouraged the trainees to maximise their knowledge and urged them to make the most out of every chance they get at learning.

He told the trainees: “We believe that there is nothing more valuable than education. As a corporate citizen proud of its Bahraini roots, Alba wants to ensure that our company is a unique and excellent place for our employees to work, and in line with the same, we remain committed towards strengthening our learning culture and developing our workforce.”

In other Alba news, Amin Sultan was appointed as acting chief operations officer (COO), effective immediately.

Sultan joined Alba in 1997 as a power station engineer after which he was promoted to superintendent in 2004 and served from 2008 as manager and senior manager in power maintenance and projects. In 2014 he was appointed as director for power and utilities.

He holds a master’s degree in electrical engineering from the University of Bahrain and recently completed his executive MBA from the French Arabian Business School and ESSEC, Bahrain.

Alba also named Dr Elham Al Eid as its new acting director of administration.

She will oversee the departments of human resources, training and development, Alba Health Care Centre and Alba Club.

Murray: building on strengths

Dr Al Eid joined Alba in 2006 as a medical officer and since 2012 she has been serving as the chief medical officer at Alba’s Health Care Centre.

Holder of a master’s degree in medical science from the University of Sheffield, UK, she is currently pursuing her MBA from  the French Arabian Gulf Business School in partnership with ESSEC, Bahrain.

Other new manage were appointed: Nezar Hameed Ali as manager for operation support services, Hussain Al-Malali (customer technical support), Mohammed A Rahim Zainal (reduction Line 5) and Khalid Ahmed Shareef (reduction maintenance & services).

Alba’s management along with the support of the Alba Labour Union and Alba Trade Union is conducting safety visits to various departments and highlighting the many ways employees can fulfil the company’s “Safety Universe” expectation for 2016.

Good Housekeeping is one of the themes of the ‘Safety Hour’. Emphasis was on the role effective housekeeping played in eliminating some workplace hazards.  Also, information about the appropriate and safe use of articles at work was highlighted.

His Royal Highness the Prime Minister, Prince Khalifa bin Salman Al Khalifa, visited Alba’s stand at the Gulf Industry Fair.

Shaikh Daij presented the Premier with a model of the smelter and the PM’s portrait made by Alba’s employees from the company’s aluminium. The model also included pictures of Prince Khalifa from Alba’s library that highlight his continuous support to the company’s growth since its establishment in 1971.

Shaikh Daij thanked the premier for his generous and continuous contribution towards the growth of the aluminium industry in Bahrain and the GCC region.