Communication - Presse

Alba posts BD15.4m gross profit

MANAMA: Aluminium Bahrain (Alba), the Bahrain-based aluminium smelter, said its top-line and bottom-line for the second quarter and first-half of 2019 were impacted by lower LME price – a drop of 21 per cent year-over-year ($1,793/t in Q2 2019 versus $2,259/t in Q2 2018).

However, this was partially offset by higher sales volumes, said a statement from Alba.

Alba reported a total comprehensive loss of BD3.3 million ($8.8m) in the second quarter of 2019, versus a total comprehensive income of BD29.1m ($77.4m) for the same period in 2018, down by 112 per cent YoY.

The company posted a gross profit of BD15.4m ($40.9m) versus BD34.3m ($91.4m) in Q2 2018, down 55 per cent YoY.

With regards to total sales/revenues, Alba reported BD245m ($651.8m) in Q2 2019, up by 0.4pc YoY, compared with BD243.9m ($648.9m) in Q2 2018. Earnings per share (EPS) in this quarter were two fils versus 21 fils in Q2, 2018.

With regards to the first half of 2019, Alba reported a total comprehensive loss of BD19.1m ($50.9m), down 130pc YoY, compared with a total comprehensive profit of BD62.9m ($167.4m) in H1 2018.

The company posted a gross profit of BD16.2m ($43.2m) versus BD74.3m ($197.7m) for H1 2018, down 78pc YoY. Total sales/revenues reached BD448.6m ($1.193 billion), down 4pc YoY, compared with BD465.2m ($1.237bn).

Earnings per share were 14 fils versus 44 fils in H1 2018.

Alba’s total assets as at June 30, 2019, stood at BD2.384bn ($6.341bn) versus BD2.208bn ($5.874bn) as at December 31, up by 8pc YoY.

Total shareholders’ equity as on June 30 stood at BD1.054bn ($2.803bn), down 2pc YoY, versus BD1.073bn ($2.855bn) as at December 31, 2018.

Alba’s Q2 industry highlights include:

  • US-China trade-tensions and geopolitical events have taken its toll on investors and added bearish dimension to the overall market sentiment. Primary demand dropped in North America and Europe due to cyclical slowdown in economic activity; stimulus measures adopted by the Chinese government have failed to create activity in key market sectors such as car and construction (+1pc YoY) and Middle East and North Africa (Mena) consumption slowed down (+1pc YoY) on the back of weaker construction activities. Consumption in Saudi Arabia retreated to single-digit growth of 5pc YoY with Ma’aden rolling mill full ramp-up completion.
  • Global production had a modest growth of 1pc YoY. Russia, India and Bahrain were the largest contributors to the world ex-China smelter production increase. On the other hand, the North America supply growth gained momentum after 2018 lacklustre (+8pc YoY).
  • World market in deficit with China (529 Kt) and (205 Kt) without China.
  • LME inventories at ~1m metric tonnes (mt) as of June-end (down 11pc YoY). LME-cash averaged $1,793/t – down 21pc YoY and physical premium prices remain under pressure.
  • Alumina price is still relatively high – 20pc of LME price.

Also during Q2 of this year Alba achieved 8m working hours without lost time injuries on July 8, 2019. The company’s production went up by 21pc YoY to reach 305,727 mt while sales volume up 25pc YoY to top 311,928 mt and value added sales averaged 52pc of total shipments in Q2 2019.

Alba chairman Shaikh Daij bin Salman Al Khalifa said: “Our company will soon be transformed into the world’s largest aluminium smelter with the smooth integration of Potline 6 into its existing operations in the upcoming weeks.”

“Alongside this transformation, we will also see the change of reign in the top management from Tim Murray to Ali Al Baqali who will lead Alba as the acting chief executive, effective August 1, as we continue to seek further efficiency and growth,” he said.

Alba CEO Tim Murray said: “The economic uncertainty and lower LME prices have taken its toll on the aluminium industry but in our company, we have emerged stronger with progressing the ramp-up of Line 6.”

“I also thank all our employees and contractors for their unwavering support and focus on safety at all times,” he added.

Mr Al Baqali added: “As we progress with Line 6 full ramp-up, we look forward to finish this year strong in our top-line and bottom-line results.”

“I also take this opportunity to thank our chairman and Alba’s board of directors for placing their trust in me to lead Alba as we begin this new chapter of growth,” he said.

“I also thank Mr Murray for his leadership and guidance as the CEO as well as the executive management team for their support,” he added.



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