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Sheikh Daij (left) and Al Baqali: positive outlook

Sheikh Daij (left) and Al Baqali: positive outlook



Alba registers solid growth in Q3 sales

The company posted a gross profit of BD29.2 million ($77.6 million) versus BD19 million ($50.6 million) in Q3 2018, up by 53 per cent YoY.

November 2019

Aluminium Bahrain (Alba), soon to be the world’s largest aluminium smelter with Line 6 expansion, said it has registered double-digit growth in its sales and production volumes during the third quarter of 2019.

Announcing the results, Alba said the sale surged by 51 per cent to hit 376,025 metric tonne (MT) year-on-year while the production volumes topped 385,396 MT, registering a 53 per cent jump over the previous year.

The aluminium giant said its top-line and bottom-line for the third quarter was primarily impacted by lower LME price [$1,761/MT vs. $2,056/MT - a drop of 14 per cent Year-over-Year (YoY) in Q3; $1,804/MT vs. $2,158/MT - a drop of 16 per cent YoY for the Nine-Months], lower premiums - and offset by higher sales’ volume.

The company generated a profit and total comprehensive income of BD10.7 million ($28.5 million) in Q3 versus BD14.3 million ($38.1 million) for the same period in 2018, down by 25 per cent YoY.

The company posted a gross profit of BD29.2 million ($77.6 million) versus BD19 million ($50.6 million) in Q3 2018, up by 53 per cent YoY. 

With regards to total sales/revenues, Alba reported BD287.1 million ($763.6 million) in Q3 2019, up by 22 per cent YoY, compared to BD234.5 million ($623.8 million) in Q3 2018. Earnings per share (EPS) in this quarter were fils 8 versus fils 10 for the same period in 2018, it stated.

According to senior officials, aluminium demand has lost momentum in most global markets: world-market consumption almost flat, first decline since 2009, due to weak economic conditions, slow global manufacturing and increased use of scrap metal.

A slowdown in the US market has led to a drop of 3 per cent YoY in aluminium consumption, while Europe consumption was down by 1 per cent YoY owing to lower vehicle demand.

Consumption in Mena region rose by 4 per cent YoY driven by infrastructure spending in UAE and Saudi Arabia, said the statement.

With regards to the nine-month period of 2019, Alba reported a loss and total comprehensive loss of BD8.4 million ($22.4 million), down by 111% YoY, compared to a profit and total comprehensive income of BD77.2 million ($205.6 million) for the same period in 2018.

The company also posted a gross profit of BD45.4 million ($120.9 million) versus BD93.3 million ($248.3 million) for the nine-month period in 2018, down by 51% YoY.

Commenting on the results, the Chairman of Alba’s Board of Directors Shaikh Daij Bin Salman Bin Daij Al Khalifa, said: “Despite downbeat economic and market sentiments, we were able to lock-in positive profitability in Q3 thanks to the progressive ramp-up of Line 6.”

“We look positively into the future as we stand at the threshold of becoming the world’s largest aluminium smelter with Line 6 fully going on-stream soon,” he stated.

Total sales/revenues reached BD735.7 million ($1,956.6 million), up by 5 per cent YoY, compared to BD699.7 million ($1.86 billion) for the first nine months of 2018. Earnings/ (Loss) per share were fils (6) versus fils 55 for the same period in 2018.

Alba’s total assets as of September 30,, 2019 stood at BD2.43 billion ($6.45 billion) versus BD2.21 billion ($5.9 billion) as of December 31, 2018, up by 10 per cent YoY.

Total shareholders’ equity for the period stood at BD1.06 billion ($2.83 billion), down by 1 per cent YoY, versus BD1.07 billion ($2.85 billion) as of December 31, 2018.

Acting CEO Ali Al Baqali said: “Due to depressed LME prices and overall industry outlook, 2019, no doubt, has been a difficult year for the aluminium market.”

“However, we aim to finish 2019 strong by achieving for the first-time a production of 1.35 million MT and exceeding 15 million working-hours without LTI – another first in Alba’s history,” he added.




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