COVID-19 continues to hurt demand: Alba

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Aluminium Bahrain (Alba) said its business for the third quarter was dampened by COVID-19 and its impacts like in all business, despite the company showing operational resilience.

“We are all in this together and COVID-19 showed us that nothing is more important than our Safety. At Alba, Safety of our people and contractors’ employees, is and will remain our number one priority,” said Alba chairman Shaikh Daij bin Salman bin Daij Al Khalifa.

Alba said its top line during the quarter was driven by higher metal sales’ volume thanks to Line 6 and partially offset by lower LME price. LME price was down by 3 per cent Year-over-Year. The bottom-line was impacted by higher depreciation, financial charges and foreign exchange losses.

Alba management further said that global recovery has lost its momentum during the quarter as the markets reacted differently with the easing of lockdown restrictions.

World aluminium consumption during the quarter was down by four per cent year over year, with the outbreak, Alba said, continues to take it toll on demand in major markets.

Recovery, Alba said, is gathering pace in China with a 3pc year-over-year increase owing to government stimulus. Primary Aluminium production in MENA down by 3pc YoY [owing to supply cuts in UAE of c.6pc YoY].

Third-quarter results

Alba said it loss in the third quarter was BD11.6 million (US$31 m), up by 209pc YoY, versus a profit of BD10.7 m (US$28.4 m) in year ago quarter. Q3 loss per share was fils 8 versus earnings per share of fils 8 in 2019.

Total Comprehensive Loss stood at BD11.7 m (US$31.1 m) versus total comprehensive profit of BD10.7 m (US$28.4 m) – up by 209pc YoY.

Gross Profit was BD25.7 m (US$68.3 m) versus BD29.2 m (US$77.6 m) in Q3 2019– down by 12pc YoY.

Quarterly revenue from Con- tracts with Customers was BD262.7 m (US$698.6 m) versus BD287.1 m (US$763.6 m) in Q3 2019 - down by 8.5pc YoY.

Nine-month results

Alba’s nine-month loss was BD22.3 m (US$59.2 m), up by 164pc YoY, versus a loss of BD8.4 m (US$22.4 m) in 2019.

Loss per share was fils 16 versus Loss per Share of fils 6 for the same period in 2019.

Gross profit was BD80.9 m (US$215.1 m) versus BD45.4 m (US$120.9 m) in nine months of 2019 – up by 78pc YoY.

Total revenue from Contracts with Customers reached BD782.6 m (US$2,081.5 m), up by 6pc YoY, compared to BD735.7 m (US$1,956.7 m) for the same period in 2019.

Looking ahead, Alba said it aims to achieve a production target of 1,540,000 MT and Maintain Project Titan - Phase IV Savings Target of 1,540,000 MT. The saving was projected to reach US$ 100 m by 2020-end.

Singapore branch

The company said it also aims to open a branch in Singapore.

“We continue to navigate through these unprecedented times by focusing on what we control best: Safety of our People, Efficient Operations and Lean Cost Structure,” Alba chief executive officer Ali Al Baqali said.

“We also remain optimistic that with the agility of our people and strategic capabilities, we will get back on track and stronger than before.”