Alba reported a sharp drop of 70 per cent in the net income for Q3 with sales down 17 per cent year on year due to lower LME prices.

Net income for the third quarter slumped to BD8.7 million ($23 million) versus BD29.5 million for the same quarter in 2014.

The company posted a net income of BD75.7 million for the nine months of 2015 versus BD61.9 million, up 22 per cent YoY on the back of higher LME prices and physical premiums in the first six months of 2015.

Regional physical premiums continue to plunge across the world, Alba noted. The LME cash average was at $1,590 per tonne with LME ranging per tonne between $1,486 on August 24 (lowest since July 2009) and $1,693 on July 2.

World consumption was up 5 per cent YoY while world production climbed 7 per cent YoY.

Q3 highlights were that sales of value-added products averaged 64 per cent of total shipments versus 66 per cent in Q3 2014. The sales tonnage rose 2.5 per cent while production was up 2.9 per cent on the back of strong operational performance.

Alba listed its priorities as continuing to focus on safety, training and development, delivering on the Project Titan target, keeping a sustained focus on value-added sales, increasing creep-up capacity with minimal capital investment and pursuing the Line 6 Expansion Project.

Line 6, expected to begin production by early 2019, will boost annual production by 514,000 tonnes, bringing total output capacity to around 1.450 million tonnes.

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 is confident it will achieve that goal.

Commenting on Q3 results, the chairman of Alba’s board, Sheikh Daij bin Salman bin Daij Al Khalifa, said: “In light of low LME prices, the company will continue to push the limit on its operational performance all the while by remaining cost competitive.”

Chief executive Tim Murray added: “Despite the collapse of all-in-aluminium prices, Alba has been able to maintain its strong intrinsic performance in a challenging market.”

Mohammed Khalid, the new manager for customer services and marketing operations

Meanwhile, the company has appointed Mohammed Khalid as the manager for customer services and marketing operations. In his new role, Mohammed will be overseeing customer service operations and marketing activities such as metal production planning, logistics, billing and documentation, pricing and market research.

Murray, commenting on the appointment, said: “Mohammed is an example of our commitment to empower Bahraini nationals and take up leadership opportunities to drive the future success of the company.”

The official joined Alba’s marketing department in June 2011 as sales officer for the GCC, Middle East and Africa, and in 2013, was promoted to head of sales for the region. Since January 2015, he officiated as the acting manager for customer services and marketing operations.

Mohammed has a Bachelor of Science in business administration – economics and finance (BSBA) from the American University of Sharjah and an MBA from Depaul University, Kellstadt Graduate School of Business.

ARABAL

Alba was a key participant and gold sponsor of the 19th edition of the Arab International Aluminium Conference and Exhibition (Arabal), which was hosted by Ma’aden in Dammam last month. The event focused on the integration of the aluminium upstream and downstream sectors throughout the GCC and combined an international exhibition and strategic conference with the participation of leading aluminium smelters in the world.

The company showcased its portfolio of high-grade aluminium products and highlighted its quality-focused production process and safety conscious operations. A high-level delegation led by chief executive Murray and chief marketing officer Khalid Abdul Latif attended the event.

“As the oldest smelter in the GCC and a regional pioneer in aluminium production, Alba is proud to support this event, which represents the smelters of the region and showcases their contribution to the global aluminium industry. It also provides the perfect opportunity to learn of new developments in the industry, examine emerging trends and strengthen ties with trading partners.”

MOU FOR MBA COURSE

Billets produced at Alba, the oldest smelter in the region

The company has signed an MoU with French Arabian Business School (FABS), Bahrain, for a new batch of MBA students.

The selected employees will undergo an 18-month MBA programme offered by FABS Bahrain in partnership with the ESSEC Business School, one of Europe’s leading institutions of its kind.

The MoU signing at the Arabian Gulf University was witnessed by key officials from FABS Bahrain and Alba and by the new batch of MBA students. “At Alba, we believe nothing is more valuable than education and, for Alba to continue being a leader in the industry we need to continuously develop our people,” said Murray. “The MBA sponsorship programme is a key part of our overall training and development strategy, which provides our high-potential employees a full range of business skills they need to compete in in a competitive global market,” he added.

Alba is developing future leaders by sponsoring its high-potential employees for MBA degrees. The MBA is a tailor-made programme that empowers managers and potential future leaders with comprehensive skills to further enhance leadership of the organisation as well as leverage their careers.

OTHER HAPPENINGS

The company provided sponsorship support for the Postsecondary International Network (PIN) Conference, held early last month in Bahrain.

Hosted by Bahrain Polytechnic, a well-known provider of applied higher education in the kingdom, the conference had as its theme “Experiential Learning and Work-Readiness”. Delegates visiting the country for the event were given a tour of the smelter and briefed about Alba’s training and development initiatives, the company’s operations and facilities and its position as a leading smelter in  the world.

They also met Murray and other Alba officials.

“As a Bahraini company, we believe in supporting initiatives that enable young Bahrainis to acquire the professional skills that will equip them to be tomorrow’s business leaders. Alba’s sponsorship underlines the company’s support towards the Economic Vision 2030 of the Kingdom of Bahrain, in which education is as an important pillar in the economy of Bahrain,” said the chief executive.