Alba reports 2019 Q2, First Half results

Alba yesterday said its top-line and bottom-line results for the second quarter and Half-year 2019 were impacted by a 21 per cent decline in LME prices, partially offset by higher sales volume. LME prices declined Yearover-Year to US$1,793/t in Q2 2019 from US$2,259/t in Q2 2018. “The economic uncertainty and lower LME prices have taken its toll on the aluminium industry but in Alba, we have emerged stronger with progressing the ramp-up of Line 6,” said Alba’s Chief Executive Officer Tim Murray.

Impacting the overall market sentiment was the US-China trade-tensions and geopolitical events with primary demand dropping 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 auto and construction [+1pc Yearover-Year (YoY)] and MENA consumption slowed down (+1pc YoY) on the back of weaker construction activities,” Alba said adding: “Consumption in Saudi Arabia retreated to 1-digit growth of 5pc YoY with Ma’aden rolling-mill full ramp-up completion.”

Russia, India and Bahrain were the largest contributors to the world ex-China smelter production increase. Total Comprehensive Loss was BD3.3 million (US$8.8m) in the second quarter versus a total Comprehensive Income of BD29.1m (US$77.4m) for the same period in 2018, down by 112pc YoY. Gross Profit was BD15.4m (US$40.9m) versus BD34.3m (US$ 91.4m) in Q2 2018, down by 55pc YoY. With regards to Total Sales/ Revenues, Alba reported BD245.0m (US$651.8m) in Q2, up by 0.4pc YoY, compared to BD243.9m (US$648.9m) in the year ago quarter.

Earnings per share (EPS) in this quarter were fils (2) versus fils 21 in Q2 2018. For the First Half of 2019, Alba reported a Total Comprehensive Loss of BD19.1m (US$50.9m), down by 130pc YoY, compared to a Total Comprehensive Profit of BD62.9m (US$167.4m) in H1 2018. Gross Profit was BD16.2m (US$43.2m) versus BD74.3m (US$ 197.7m) for H1 2018, down by 78pc YoY.

Total Sales/Revenues reached BD448.6m (US$1,193m), down by 4pc YoY, compared to BD465.2m (US$1,237.2m). Earnings per share were fils (14) versus fils 44 in H1 2018. Commenting Alba’s Deputy CEO Ali Al Baqali said, “As we progress with Line 6 full rampup, we look forward to finish 2019 strong in our top-line and bottom-line results.”