Alba swings to profit on higher Aluminium prices

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Aluminium Bahrain (Alba), the world’s largest aluminium smelter w/o China, swung to profit in the second quarter of 2021 driven by a higher top-line, thanks to a strong rebound in global consumption.

Top-line were driven by higher LME prices (61% YoY in Q2 2021 and 41% YoY in H1 2021) and partially offset by lower Sales’ volume (a drop of 1% YoY in Q2 2021 and 3% YoY in H1 2021) while the bottom-line for Q2 and H1 2021 was driven by higher top-line and partially impacted by higher Selling and Distribution Expenses.

Alba also reported a strong rebound in Global consumption underpinned by a V-Shape Economic Recovery. Metal consumption was strong in key markets across the globe, thanks to stimulus packages across the globe touching US$1.2 trillion in the US andEuro750 billion in the EU.

The Middle East also recorded a double-digit increase in demand to 17% YoY, driven by strong demand from the UAE. Manufacturing touched an all-time high in North America, where Aluminium consumption rose 49% YoY. Alba also reported a rebound in world ex-China consumption (+33% YoY) and Europe’s +29% YoY owing to strong market recovery. “Chinese market is no longer the bullish driver it used to be with Chinese authorities urging SHFE futures exchange to avoid excessive speculation.

Chinese consumption almost flat (+1% YoY),” Alba statement added. Commenting on Alba’s financial performance for the first half of 2021, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa stated: “We continued with the strong momentum we’ve started in the first quarter of 2021, and this has led us to set all-time records in our performance.

We have achieved the highest-ever production of 773,887 metric tonnes while Value Added Sales reached new heights with 472,323 metric tonnes (translating into 64% of our Sales). These new precedents were made possible thanks to Line 6 Expansion Project.”

Quarterly results

Second-quarter profit was BD92.6 million (US$246.2 m), up by 665% Year-over-Year (YoY), versus a Loss of BD16.4 m (US$43.6 m) for the same period in 2020.

Basic and Diluted Earnings per Share was fils 65 for Q2 2021 versus Basic and Diluted Loss per Share of fils 12 for the same period in 2020. Total Comprehensive Income stood at BD90.6 m (US$241.1 m) versus Total Comprehensive Loss for the second quarter of 2020 of BD18.2 m (US$48.4 m) – up by 598% YoY.

Gross Profit was BD123.7 m (US$328.9 m) versus BD21.6 m (US$57.6 m) for the same period in 2020 – up by 471% YoY. Alba generated revenues of BD370 m (US$984 m) versus BD244 m (US$649.1 m) in Q2 2020 - up by 52% YoY.

H1 results

For the First Half of 2021, Alba’s Profit was BD144.8 m (US$385 m), up by 1,461% YoY versus a Loss of BD10.6 m (US$28.3 m) for the same period in 2020.

Earnings per Share was fils 102 versus Loss per Share of fils 8 for the same period in 2020. Total Comprehensive Income was BD149.1 m (US$396.5 m), up by 852% YoY, compared to a Total Comprehensive Loss of BD19.8 m (US$52.7 m) in H1 2020. Gross Profit was BD204.2 m (US$543 m) versus BD55.2 m (US$146.8 m) in H1 2020 – up by 270% YoY.

Alba generated Revenue of BD672.7 m (US$1,789 m) versus BD520 m (US$1,383 m) in H1 2020 - up by 29% YoY. Looking ahead, Alba said it is working to meet the 2021 production target of 1,540,000 metric tonnes & Deliver on AL HASSALAH Savings’ Target of US$70 m by 2021-end and focus on Green and Sustainable initiatives.