Alba Q3 net income jumps 65 per cent

Manama : Aluminium Bahrain (Alba) yesterday announced financial results for the third quarter of 2016 reporting a 65 per cent jump in net income helped by solid operational performance despite a relatively weak physical premium environment. 

Net Income for quarter surged 65pc YoY to BD14.3 million (US$38.1m) versus BD8.7m (US$23m) in the third quarter of 2015.

Total sales were BD174.3m (US$463.5m) versus BD184.4m (US$490.4m) for the same period in 2015, a drop of 5pc YoY due to a plunge in premium prices. Sales volume rose by 3.1pc YoY, while production was up by 2.4pc YoY. 

World consumption rose by 5pc YoY, while production increased 3pc YoY. Asian demand rose by 6pc YoY mainly supported by Chinese Consumption (7pc YoY). MENA consumption remains strong (6.5pc YoY) driven by major infrastructure spending in Saudi Arabia alone (20pc YoY). Europe demand up by 2pc YoY with consumption in North America almost flat (1.5pc YoY) 

For the nine months of 2016, the company posted a net income of BD34.8m (US$92.6m) versus BD75.7m (US$201m), down by 54pc due to lower LME and premium prices.  

Total sales stood at BD496.5m (US$1.32 billion), down by 16pc YoY versus BD590.3m (US$1.57bn) for the same period in 2015 on the back of dual drop in LME and premium prices. 

Commenting on Q3 results, Chairman Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “Alba continues to raise the bar in a challenging environment and was able to maintain its performance on many fronts. And as we move ahead, we look forward to secure the ECA financing tranche for Line 6.” 

Chief Executive Officer, Tim Murray added: “Alba was able to raise Net Income on the back of a solid operational performance despite a relatively weak physical premium environment. 

Alba will be holding a conference call today to discuss  performance for the third quarter 2016.