Alba reports Q3 results

Aluminium Bahrain (Alba) yesterday said its third Quarter top-line and bottom-line were primarily impacted by lower LME price, lower premiums - and offset by higher Sales’ volume. LME price dropped 14 per cent year-over-year in Q3 to US$1,761/MT from US$2,056/ MT in the year earlier quarter.

Preparations are ongoing for Alba’s Line 6, inauguration on 24 November 2019, which is almost complete will over all progress exceeding 98 per cent. Alba’s Power Expansion project is also nearing completion with overall progress of PS 5 at 97pc and PDS at 99pc. The company also said it achieved a double-digit growth for Sales’ volume & Production in Q3 2019.

Q3 results

total comprehensive income of BD10.7 million (US$28.5m) in Q3 versus BD14.3m (US$38.1m) for the same period in 2018, down by 25pc YoY. Gross Profit was BD29.2m (US$77.6m) versus BD19.0m (US$50.6m) in Q3 2018, up by 53pc YoY.

Total Sales/Revenues rose 22pc to BD287.1m (US$763.6m) from BD234.5m (US$623.8m) in Q3 2018. Earnings per share (EPS) in this quarter were fils 8 versus fils 10 for the same period in 2018. Sales’ volume reached 376,025 MT - up by 51pc YoY while Production topped 385,396 MT - up by 53pc YoY.

MENA Aluminium consumption rise

Driven by increased infrastructure spending in UAE and Saudi Arabia, Aluminium consumption in MENA rose by 4pc YoY. Meanwhile, weak economic conditions, slow global manufacturing and increased use of scrap metal hurt demand in global markets.

A slowdown in the US market has led to a drop of 3pc YoY in aluminium consumption, while Europe consumption was down by 1pc YoY owing to lower vehicle demand.

Nine-month results

For the Nine-Months of 2019, Alba reported a Loss and Total Comprehensive Loss of BD8.4m (US$22.4m), down by 111pc YoY, compared to a Profit and Total Comprehensive Income of BD77.2m (US$205.6m) for the same period in 2018. LME price dropped 16pc YoY for the Nine-Months to US$1,804/MT from US$2,158/ MT in the year ago period.

Gross Profit was BD45.4m (US$120.9m) versus BD93.3m (US$248.3m) for the NineMonths of 2018, down by 51pc YoY. Total Sales/Revenues reached BD735.7m (US$1,956.6m), up by 5pc YoY, compared to BD699.7m (US$1,861.1m) for the NineMonths of 2018. Earnings/ (Loss) per share were fils (6) versus fils 55 for the same period in 2018.