Alba reports 2015 results

Manama : Aluminium Bahrain BSC (Alba) yesterday announced its full-year and fourth quarter 2015 results reporting total sales of BD766.7 million (US$2.039 billion) in 2015 versus BD821.6m (US$2.185bn) in 2014, down by 7 per cent YoY due to the collapse of all-in-prices. 

The board recommended a final 2015 dividend of BD7.8m (US$20.6m) in addition to the interim dividend already paid in September 2015 of BD7.8m (US$20.6m). The total dividend proposed for fiscal year 2015 is BD15.5m (US$41.3m) versus BD37.9m (US$101m) in 2014.

In the fourth quarter of 2015, total sales totalled BD176.3m (US$468.9m), down by 21pc YoY, versus BD222.2m (US$590.9m) in Q4 2014, owing to the double dip of LME and premium prices.

Net Income stood at BD59.9m (US$159.5m) in 2015 compared to BD96.5m (US$256.5m) in 2014 - down by 38pc YoY. 

For the fourth quarter, the company reported a net loss of BD15.8m (US$42m) versus net profit of BD34.6m (US$92mn) for the same period in 2014, down by 54% YoY. The loss was driven primarily by lower LME prices and the one-time charge related to an Early Retirement Scheme (ERS). The ERS programme was designed to optimise overall manpower levels and also provide upward mobility for the younger generation of employees. 

Net profit, excluding the one-off costs relating to early retirement pay-out, stood at BD78.2m (US$208m) in 2015 and at BD1.9m (US$5m) in Q4 2015. 

Commenting on the results, Chairman of Alba’s Board of Directors, Daij Bin Salman Bin Daij Al Khalifa: “2015 was another great year in terms of Safety and Production with Alba producing more than 960,000 metric tonnes. Alba’s underlying performance was very strong despite difficult market conditions.

“As we move ahead in 2016, we remain focused to accelerate ‘Line 6 Expansion Project’ early works so we remain on schedule to produce the first hot metal by early 2019.”

Alba’s Chief Executive Officer, Tim Murray added: “Despite the collapse of all-in-prices, Alba continued to outpace the industry in terms of financial performance. 2016 will be a challenging year but we will build on the success of project Titan and the success of the ERS programme which have helped us to optimize our cost structure for the difficult road ahead.” 

Alba’s Management will be holding a conference call today  discuss Alba’s performance for the 2015 Full-Year Results as well as outline the company’s priorities for the remainder of 2016.