ALUMINIUM Bahrain (Alba)’s Q1 net income increase of 89 per cent YoY was hailed as a “solid” performance by chief executive Tim Murray while chairman Mahmood Hashim Al Kooheji attributed a focus on strengthening the competitive edge for the big jump even as work continued in the revamping and overhauling of the calciner and marine plant to meet requirements of the Line 6 expansion.

Announcing the financial results, the company said it registered a net income of $108 million (BD40.5 million) in the first quarter of the year against $57 million for the same period in 2012. Sales were $498 million, up $2 million from $496 million in Q1 2012, thanks to strong physical premiums and favourable management performance.

“Alba was able to deliver a solid quarterly financial performance despite tough LME (London Metal Exchange) market conditions. We were able to capitalise on a significant increase in product premiums on the back of a strong operational performance,” said Murray. Added Al Kooheji: “The company’s focus on strengthening its competitive edge through operational improvement has led to a big jump in production which contributed directly to the bottom line. I would also like to express my sincere appreciation to the team at Alba for their efforts to improve overall safety performance.”

Murray: performance solid

Earlier, the company had announced Q1 performance by volume with sales reaching 219,537 tonnes, up 2.2 per cent, and production jumping 3 per cent to 227,414 tonnes. In March 2013, Alba paid $52 million as the final dividend for 2012 bringing the total dividend for 2012 to $105 million.

Alba has said its priorities for the remainder of 2013 are continuing with safety improvement, maintaining value-added sales and leveraging second half premium negotiations, increasing creep capacity with minimal capital investment and pursuing the Line 6 expansion project which is aimed at adding production capacity of 400,000 tonnes per year to reach a total of 1.3 million tonnes.

To meet metal production expansion, the calciner and marine department is revamping its entire operations over the next two years. The company remains well-positioned to meet demands posed by an expansion in metal production as the department sets new records in revamping and overhauling its operations.

The focus of the revamp has been to bring complete and total refurbishment to the equipment and plant in the next two years so that it can continue to deliver effective support services to the carbon and pot lines.

A key milestone in this drive was the successful replacement of the refractory of Rotary Kiln 2, which was accomplished ahead of schedule in 35 days without a single Lost Time Injury (LTI). A total of 450 tonnes of refractory work was done and a total of 250 people worked round the clock to make this possible replacing 450 tonnes of refractory materials. A ceremony was held at the Alba calciner to mark this achievement.

Murray and chief operations officer Isa Al Ansari congratulated the calciner and marine team led by its manager, Prakash Jha, and refractory maintenance team led by Adel Mansoory for remaining on track with the planned overhaul project.

Al Ansari commented: “As Alba embarks on further expansion and increased growth, it is crucial that each and every support service is revamped to handle the enlarged operations.

“The revamping and overhauling of the calciner and marine plant is a step in this direction, and is expected to provide the necessary backing to the company’s goals for achieving increased production of high-grade aluminium.

“We would like to congratulate the calciner and marine team for efficiently managing the current revamping of the plant and ensuring that safety remained a priority at every step of the revamp projects.”

European Parliament MPs at Alba

Alba is one of two aluminium smelters in the world to have a dedicated petroleum coke calciner plant. Built over 140,000 sq m of reclaimed land at the Alba marine terminal in May 2001, it produces 550,000 tonnes per annum of high-grade calcined petroleum coke.

SAFETY ISSUES
Meanwhile, Alba’s executive management team held a meeting with some of its main contractors to discuss safety across all of the company’s facilities.

Murray and Al Ansari highlighted the steps the company is taking to ensure all-round safety, and how these steps resulted in its achieving the mark of 4 million work hours without LTI in the month of April.

During the meeting, it was decided that monthly meetings be held between contractors and the hygiene, safety and environment team along with quarterly meetings with the executives, if necessary.

Murray noted that as contractors share the same work space with Alba employees they should be included in the campaign to develop a zero accident work environment.

At the meeting, the importance of the three Zero Accidents Principles was also highlighted in bringing about a culture shift within the company. The principles state that the ownership of safety is everyone’s responsibility; working safely is a condition of employment; all work related injuries and illnesses are preventable.

VISIT OF EUROPEAN MPS
Alba expressed its continuing support for stronger commercial, economic and cultural ties between Bahrain and Europe as it welcomed a seven-member delegation from the European Parliament to the Alba plant.

Chief Operations Officer Al Ansari and other company officials briefed the delegation on the company’s production growth and the global presence of its portfolio of high-grade aluminum products as well as its commitment to safety and environment.

Al Ansari commented: “Europe is one of the major markets for Alba’s high-grade aluminum products and today we export nearly 12 per cent of our output to some of the leading industrial houses on the continent. With the setting up of our sales office in Switzerland, we are confident of further enlarging our presence in Europe and strengthening awareness of Bahrain as an industrial force.

Al Kooheji: competitiveness helped

SUPPORT FOR ‘GO GREEN’
Alba’s commitment to remain at the forefront of promoting research in eco-friendly technologies provided the incentive behind the company’s sponsorship support for the new versions of the solar and fuel cell cars being developed at the University of Bahrain (UOB)’s College of Engineering as part of the Go Green 2013 project.

Al Ansari and senior manager for human resources and public relations Abdul Rahman Janahi met a senior delegation from the University of Bahrain’s College of Engineering to affirm Alba’s support for the green venture.

The delegation was led by the dean of the College of Engineering, Prof Nader M Al Bastaki and included head of the chemical engineering department Dr Shaker M Haji and associate professor Dr Mustafa Habib as well as Go Green 2013 team leader Ahmed Mohammed Al Balooshi, an engineering student.

The Go Green 2013 project was launched to represent Bahrain at international competitions including the World Solar Challenge and Shell Eco-Marathon (Euro Germany and Asia). The project is aimed at designing and manufacturing improved versions of existing solar and fuel cell-powered vehicles using advanced materials that have higher strength to weight ratio and backed with advanced technologies to build new racing solar and hydrogen fuel vehicles.

Commenting on Alba’s sponsorship support for Go Green 2013 project, the company’s hygiene, safety and environment manager Abdulla Yaqoob Senan said: “Over the years, Alba has made considerable investment in production processes that are environmentally sound, protect the ecological cover and promote sustainability.”