Alba cuts losses to $28m in H1

Aluminium Bahrain (Alba), the world’s largest aluminium smelter ex-China, has reported a loss of BD10.6 million ($28.3 million) for the first half of 2020, down by 44% year-on-year (YoY) versus a loss of BD19.1 million ($50.9 million) for the same period in 2019. 

 

For the first half of 2020, Alba reported basic and diluted loss per share of fils 8 versus basic and diluted loss per share of fils 14 for the same period in 2019. Alba’s total comprehensive loss for H1 2020 was BD19.8 million ($52.7 million), up by 4% YoY, compared to a total comprehensive loss of BD19.1million ($50.9 million) in H1 2019. Gross profit for the first half of 2020 was BD55.2 million ($146.8 million) versus BD16.2 million ($43.2 million) in H1 2019 – up by 241% YoY.  

 

The company reported a loss of BD16.4 million ($43.6 million) for the second quarter of 2020, an increase of 392% year-over-year (YoY) versus a loss of BD3.3 million ($8.9 million) for the same period in 2019. 

 

The company reported basic and diluted loss per share of fils 12 versus basic and diluted loss per share of fils 2 for the same period in 2019. 

 

The total comprehensive loss for Q2 2020 stood at BD18.2 million ($48.4 million) compared to BD3.3 million ($8.9 million) during the same period in 2019. Gross profit for the second quarter of 2020 was BD21.6 million ($57.6 million) versus BD15.4 million ($40.9 million) in Q2 2019 – up by 41% YoY. 

Total equity as at 30 June 2020 stood at BD1,057.1 million ($ 2,811.5 million), down by 2%, versus BD1,078.6 million ($2,868.6 million) as at 31 December 2019. Alba’s total assets as at 30 June 2020 topped BD2,380.7 million ($6,331.7 million) versus BD2,420.2 million ($6,436.8 million) as at 31 December 2019 - down by 2%. 

 

With regards to the revenue from contracts with customers in the second quarter of 2020, Alba generated BD244 million ($649 million) versus BD245 million ($651.8 million) in Q2 2019 - down by 0.4% YoY. For the First Half of 2020, total revenue from contracts with customers reached BD519.9 million ($1,382.9 million), up by 16% YoY, compared to BD448.6 million ($1,193 million) for the same period in 2019. 

 

Alba’s top-line was driven in the second quarter of 2020 by higher metal sales volume thanks to Line 6 and impacted by lower LME price, which was down by 17% year-over-year ($1,494/t in Q2 2020 versus $1,793/t in Q2 2019), while the bottom-line was impacted by higher depreciation and financial charges.

 

Alba board chairman Shaikh Daij Bin Salman Bin Daij Al Khalifa stated: “As Covid-19 unfolds, we continue to focus on adapting to the new life norm and keeping our people safe as we navigate together through this crisis. Despite the challenging market conditions, we are unlocking our strength as we aim to close 2020 by meeting our production target of 1,540,000 metric tonnes.” 

 

Alba Chief Executive Officer Ali Al Baqali said: “Today, the world is going through radical transformation and the Aluminium industry is not an exception. Despite the odds, we have been able to maintain a stable performance by delivering on our commitments. 

 

“In the face of this crisis, we choose to get better by capitalising on our Safety culture and operational resilience which has led us to achieve more than 24 million safe working-hours without LTI as of to-date.”  

 

Q2 2020 Alba Highlights

*Sales volume topped 390,750 metric tonnes (MT) - up by 25% YoY while Production reached 378,558 MT - up by 24% YoY. 

Value Added Sales averaged 34% of the total shipments. 

* Achieved 23 million working-hours w/o LTIs for the first time in Alba’s commercial operations on 29 June 2020.

* 7-year winning streak with Gold Medal Health & Safety Award from the Royal Society for the Prevention of Accidents (RoSPA).

* Alba was honoured with British Safety Council’s International Safety Award with Merit – 2020.

* Titan – Phase IV achieved savings were $74 million against 2020 target of $100 million.

* Spent Pot Lining (SPL) Treatment Plant in progress (overall progress exceeded 21%). 

 

Q2 2020 industry highlights

* The global spread of Covid-19 pandemic has disrupted the world’s economy. Governments’ strategies have been focused to contain the spread of Covid-19 from restricting travels to closing public services and limiting industrial activity. Commodities have taken the hardest hit and aluminium supply-chain is not an exception.   

* World consumption down by 9% year-over-year.

* World ex-China has seen the largest-ever decline in aluminium consumption (a drop of 28% YoY).

* Covid-19 pandemic takes its toll on aluminium demand in major markets:  a drop of 35% in US, 30% in Europe and 22% in Mena. 

* Chinese economy has been recovering from the pandemic-driven shutdown thanks to the government’s stimulus measures which has led to 5% YoY growth in aluminium demand (mainly via a rebound in construction and auto sectors).

* Global production witnessed a modest growth of 1% YoY. Primary aluminium production in Mena continues - up by 25% YoY [mainly on the back of Alba’s Line 6 metal]. US manufacturing continues with production in North America up by 5% YoY. Better Shanghai Futures Exchange (SHFE) prices has led the Chinese supply to grow by 2% YoY. Europe supply down by 3% YoY due to COVID-19 disruptions to the Aluminium downstream. This has led the world market to be in surplus with China (+445Kt) and (+1,622Kt) without China.

* LME inventories at ~1.6 million MT as of June-end (up by 66% YoY). LME-Cash averaged $1,494/t (down by 17% YoY) and the physical premium prices continue to be under downward pressure.  – TradeArabia News Service

 

Source: http://www.tradearabia.com/news/IND_370848.html

 

Share this page Share on FacebookShare on TwitterShare on Linkedin
Close

Listen to 'Radio FCCIB' Videos & Podcast

Radio FCCIB is the new program launched by the French Chamber of Commerce & Industry in Bahrain, asking 3 questions to its members