Alba posts BD5.7m net profit in first quarter

MANAMA: Aluminium Bahrain, the world’s largest aluminium smelter ex-China, has generated a net profit of BD5.7 million ($15.3m) for the first quarter, compared with a loss of BD15.8m ($42m) during the same period in 2019.

Announcing the results for the first three months, Alba said its revenue grew by 36 per cent in Q1 to hit BD276m ($733.8m) compared with BD203.5m ($541.2m) for the same period last year.

The company reported basic and diluted earnings per share of four fils versus basic and diluted loss per share of 11 fils for the same period in 2019.

The total comprehensive loss for the first quarter stood at BD1.6m ($4.3m) versus total comprehensive loss for the first quarter of 2019 of BD15.8m ($42m) – up by 90pc YoY thanks to changes in fair value of cash flow hedge.

Total equity as of March 31, 2020 stood at BD1.07 billion ($2.86bn), down by 0.3pc YoY, versus BD1.08bn ($2.87bn) in December 2019.

Alba’s total assets as of March 31, 2020 topped BD2.42bn ($6.44bn) versus BD2.42bn ($6.43bn) as at 31 December 2019 – up by 0.2pc YoY.

Alba’s top-line and bottom-line were driven in the first quarter of 2020 by higher metal sales volume thanks to Line 6 and impacted by lower LME price (down by 9pc YoY – $1,690/t in Q1 2020 versus $1,859/t in Q1 2019).

According to Alba, the unprecedented halt in the global economic activity has sent shockwaves through the entire aluminium supply-chain. A quarter of the world population live under lockdown.

The aluminium downstream has lowered output levels or has already shut down. The car sector has taken the hardest hit from novel Covid-19 outbreak; other sectors have also witnessed a sharp decline thanks to the closure of extruders, rolling-mills and construction facilities.

World Consumption fell by 8pc YoY leading to an aluminium demand collapse in major markets. The market in Europe and China witnessed a 10pc drop, while it was 8pc YoY in Mena and 6pc YoY in North America.

Commenting on Alba’s financial performance for the first quarter of 2020, Alba board of directors chairman Shaikh Daij bin Salman Al Khalifa said: “As the world is facing unprecedented times with the novel Covid-19 outbreak, we managed to close the first quarter of this year with overall good performance despite depressed LME prices. As Covid-19 continues to unfold, our priority is and will remain the Safety of our people – employees and contractors.”

Alba’s chief executive Ali Al Baqali said: “Thanks to the agility of our supply-chain team and our response strategy to overcome the challenges associated with Covid-19, we have been able to deliver on our commitments towards our clientele across the globe while focusing on our cost-cutting programme ‘Project Titan’ to drive savings. As we ensure the smooth operation of our plant, we have implemented strict safety measures to protect our workforce as we navigate together through this crisis.”

 

Source: http://www.gdnonline.com/Details/822019

 

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