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Alba: setting new benchmarks

Alba: setting new benchmarks



Alba sees major jump in Q2 and H1 financial numbers

Alba’s financial achievements, were primarily driven by an increase in value added aluminium products and higher LME prices, which stood up by 20 per cent yoy during 2Q 2022 and 37 per cent yoy during 1H2022

01 September 2022

Aluminium Bahrain (Alba) released results for the second quarter and first half of 2022 last month. Numbers were generally up for the year’s first half thanks in part to an increase in value added aluminium products and higher LME prices.

The world’s largest aluminium smelter outside China, reported a profit of BD181.9 million ($483.9 million) for the second quarter of 2022, up by 97 per cent year-over-year (YoY), versus a profit of BD92.6 million ($246.2 million) for the same period in 2021.

Gross profit for Q2 was BD208 million, compared to BD123.7 million a year ago, up by 68 per cent YoY.

Shaikh Daij Bin Salman Bin Daij Al Khalifa

Shaikh Daij Bin Salman Bin Daij Al Khalifa

The total comprehensive income for Q2 also raised by 123 per cent year-on-year from BD90.7 million ($241.1 million) to BD201.9 million ($536.9 million). With regards to the revenue in Q2 2022, Alba generated BD520.4 million ($1,384 million) versus BD370 million ($984 million) in Q2 2021 – up by 41 per cent YoY.

For the first half of 2022, Alba reported a profit of BD328.7 million ($874.3 million), up by 127 per cent YoY versus a profit of BD144.8 million ($385.1 million) for the same period in 2021.

Alba’s total comprehensive income for H1 2022 was BD357.9 million, up by 140 per cent YoY, compared to BD149.1 million in H1 2021. Gross Profit for H1 2022 was BD386 million versus BD204.2 million in H1 2021 – up 89 per cent YoY. 

 Alba generated in H1 2022 Revenue of BD975.3 million ($2,593.9 million) versus BD672.7 million ($1,789 million) in H1 2021 - up by 45 per cent YoY.

Total equity as at June 30, 2022 stood at BD1,770.6 million ($4,709.1 million), up by 18 per cent, versus BD1,503 million ($3,997.4 million) as at December 31, 2021. Alba’s total assets as of June 30, 2022 were BD2,717.3 million ($7,226.9 million) versus BD2,624.6 million ($6,980.3 million) as at December 31, 2021 - up by 3.5 per cent.

Alba’s financial achievements till June 30, 2022, were primarily driven by higher LME prices, which stood up by 20 per cent Y-o-Y during 2Q2022 and 37 per cent Y-o-Y during 1H2022.

Ali Al Baqali

Ali Al Baqali

Alba’s top-line were driven by higher LME prices (up by 20 per cent YoY in Q2 2022 and up by 37 per cent YoY in H1 2022) despite flat growth in sales volume while the bottom-line for Q2 and H1 2022 was driven by higher top-line and partially impacted by higher cost and distribution expenses, the company said.

In terms of operational performances, Alba reported sales volume of 742,658 tonnes for H1 2022, almost flat compared to the same period last year, while production reached 787,592 tonnes, up by 1.7 per cent on the year.

Aluminium value added product sales averaged 67 per cent of the total shipments in six months, the highest in history, versus 64 per cent last year. Alba also mentioned in its results that it secured a 10-year Offtake Agreement with South32 for the supply of alumina.

Some of Alba’s top priorities for 2022 include delivery on newly-launched ESG roadmap in line with Bahrain’s net zero emissions goal by 2060, exceed production target of 1.56 million tonnes, capitalise on ASI and Ecovadis certifications to penetrate new markets, and increase VAP sales beyond 70 per cent of shipments.

Alba: delivering strong performance

Alba: delivering strong performance

Commenting on the results, Shaikh Daij Bin Salman Bin Daij Al Khalifa, Chairman of Alba’s Board of Directors, said: “We have had an unmatched financial performance as we set new benchmarks in the last 3 quarters (Q4 2021, Q1 and Q2 2022) and on many fronts: Profit of BD328.7 million in H1 2022 – up by 127 per cent YoY; Value added sales top 70 per cent in Q2 2022 – a first time in our history (67 per cent in H1 2022); Safety: a new leap was achieved with more than 29 million safe working hours without LTI.

“This strong performance has enabled us to distribute an interim dividend of US$120 million to our shareholders. As we progress into the rest of 2022, we remain committed to build sustainable returns while also delivering further value to our shareholders.”

Alba’s Chief Executive Officer, Ali Al Baqali said: “Our exhibit profitability was backed by improved product mix towards value added products’ sales and sound cost savings. Despite the logistics challenges in the market, we have been able to deliver another strong quarter by capitalising on higher LME price and that has allowed us to service our loans and reduce our overall debt profile.

 “We are only as good as our employees; it is thanks to our collective pro-activeness in safety, we have reached a record landmark with topping more than 29 million safe working hours without LTI,” he said.

 

EYES RECORD VAP SALES IN 2022

Meanwhile, the largest aluminium smelter in the world ex-China said its newest casting facility, Casthouse 4 (CH4), is a key component of the Line 6 expansion project that will help expand its portfolio of value-added products (VAP).

Commissioned in December 2018, Casthouse 4 has a built-in annual capacity of 530,000 mtpa for VAP.

“We built Casthouse 4, our newest casting facility with state-of-the-art operations, to expand our VAP portfolio. We aim to close 2022 with at least 72 per cent VAP sales; thus exceeding our last year’s sales of 63 per cent,” said Shaikh Daij, after his field visit to Casthouse 4. 




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