Sheikh Deij: results ‘tremensous’

Sheikh Deij: results ‘tremensous’

Alba’s first quarter net income up 117pc

01 June 2015

Aluminium Bahrain (Alba) reported strong gains in net income and sales for the first quarter of the year.

It posted a net income of BD37.2 million ($98.9 million), up 117 per cent YoY versus BD17.1 million. Total sales climbed 13 per cent to reach BD206.6 million on the back of higher sales volume and physical premiums.

The company had paid BD21 million in March as the final dividend tranche for 2014 bringing that year’s total dividend to BD37.9 million.

Commenting, the chairman of the board of directors, Sheikh Daij Bin Salman Al Khalifa, said the results were “tremendous” and thanked staff for their contribution. “We intend to use this strong momentum as we look forward to the Line 6 expansion project,” he said.

Chief executive officer Tim Murray remarked: “Alba’s operational performance excelled in the first quarter and will continue to drive bottomline results as well as focus on future growth. I would like to express my sincere gratitude to all Alba employees and contractors for their contributions in achieving five million hours without lost time injuries.”

The results came in the backdrop of a 4 per cent increase in world consumption YoY with world output rising 7 per cent and soft premiums under significant pressure. LME inventories were at 3.9 million tonnes in March. The LME cash average was $1,801 per tonne versus $1,708 for the same period last year.

Murray: driving bottomline results

Murray: driving bottomline results

Alba listed several highlights of the quarter. There was continued improvement in the health and safety performance. Metal sales were at 228,307 tonnes versus 226,472 tonnes in Q1 2014. Production was up 2.4 per cent to reach 237,774 tonnes and an increase in physical premiums was noted. Value-added sales averaged 64 per cent of total shipments.

Alba pledged to focus continuously on safety and training, deliver on Project Titan, maintain the focus of value-added sales and pursue the Line 6 expansion. Project Titan is a two-year efficiency programme whose objective is to reduce cash cost by $150 per tonne by the end of January 2016.

The company re-launched its Code of Conduct as well as its confidential reporting system, “Integrity Line.”

Alba was one of the foremost companies in the region to launch its own Code of Conduct and confidential reporting system in 2011. The updated Code of Conduct was developed with revised inputs from all departments.

Shaikh Daij said: “We believe in leading by example.” He added that the company expected its employees to maintain the highest ethical standards and comply with the company’s regulations, the kingdom’s laws and internationally recognised business standards.

Murray added that “great companies are based on trust.” He encouraged staff to “raise concerns through the channels provided” and assured them there would be no retaliation against whistle blowers.

In other developments, Alba was honoured by the British Safety Council which presented it with two major safety awards at Grosvenor House, London. It was one of the winners of International Safety Awards 2015.

Alba employee Ahmed Janahi also bagged the Health and Safety Champion Award, 2015 for his instrumental role in developing the safety culture of Alba.

The company was a key sponsor and participant in CRU’s 20th World Aluminium Conference, which took place last month in Dubai.

Acting chief marketing officer Khalid Abdul Latif said: “CRU’s World Aluminium Conference plays a pivotal role in bringing together some of the leading decision-makers from around the world, and presents opportunities to discuss challenges facing the aluminium industry.”

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