Shaikh Daij

Shaikh Daij

Alba’s Q1 net income jumps 506pc to $68m

01 May 2017

Aluminium Bahrain (Alba), a leading global aluminium smelter, posted a net income of BD25.6 million ($68 million) in the first quarter of 2017, compared to BD4.2 million ($11 million) in Q1 2016, a 506 per cent increase year-on-year (YoY).

Alba’s total sales for the first quarter of 2017 jumped by 22 per cent YoY to reach BD190.4 million ($506 million) versus BD156.4 million ($416 million) for the same period in 2016.

The company’s top-line and bottom-line performance for the first quarter of 2017 were driven primarily by higher LME prices and favourable management performance.

During the recent AGM, Alba approved a dividend of BD29.6 million ($78.7 million) to be paid from April 2.

Daij Bin Salman Bin Daij Al Khalifa, Alba chairman said: “Alba has successfully closed the first quarter strong with an unparalleled performance in its top-line and bottom-line. Together with our solid financial basis, we will be able to transform Alba as Line 6will shape our future for the generations to come.”

Alba’s chief executive officer, Tim Murray added: “Alba continues to improve its underlining performance through leveraging the recent gains in LME prices.  Despite the recent power outage incident, Alba still expects to deliver strong results in 2017.”

Alba›s Management will be holding a conference call on April 25 to discuss Alba›s financial performance for the first quarter of 2017 as well as outline the company›s priorities for the remainder of the year.


Global physical demand remains healthy with world consumption up by 6 per cent YoY. Asian demand rose by7 per cent YoY led by Chinese consumption (+8 per cent YoY). Mena demand grew by 5 per cent YoY driven by major infrastructure spending in Saudi Arabia (+13 per cent YoY).

Tim Murray

Tim Murray

In addition, demand in North America surged by 3 per cent YoY supported by firm growth in the auto production while Europe consumption rose modestly by 2 per cent YoY attributed to good demand in construction and automotive sectors.

World production rose by 9 per cent YoY supported by Chinese output (+17 per cent YoY). Meanwhile, the company has secured commitments of about $700 million from Export Credit Agency (ECA) supported facilities to finance Line 6 Expansion project. 

The facilities are made-up of a dual tranche of c. $310 million and c. EUR315 million ($334 million) SERV Guaranteed Export Credit and c. EUR50 million Euler Herms Guaranteed Export Credit.

The SERV-backed facility will fund the company’s Power Station 5 (PS5) wherein General Electric (GE), EPC contractor, will provide three 9HA gas turbines, three steam turbines and three heat recovery steam generators (HRSGs).

This facility will have a 15-year tenor and the principal amount will be repaid over 12-year period. The Hermes-backed facility will finance the Power Distribution Systems (PDS) where Siemens will construct and commission High Voltage electrical network and provide Gas Insulated Switchgear (GIS) up to 220kV. This facility will have a 14-year tenor and the principal amount will be repaid over 12-year period.

Shaikh Daij Bin Salman Bin Daij Al Khalifa, Alba’s chairman said: “Securing the Export Credit Financing for Power Station 5 and power distribution system is a strong vote of confidence in Line 6 Expansion Project.

“We look forward to work with the Swiss and German Governments as well as with GE and Siemens to progress with Line 6 as per schedule.”

JPMorgan Chase Bank, acting as the ECA coordinator to assist the Company in arranging the ECA facilities. Further information will be provided in due course.

Expected to start metal production in early 2019, Line 6 Expansion Project will boost the per-annum production by 540,000 metric tonnes upon its full ramp-up, bringing Alba’s total production capacity to 1,500,000 metric tonnes per annum to make Alba the world’s largest single-site aluminium smelter.

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