Alba steps into US$700m club

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Powered by Line 6 Expansion Project and higher demand, Aluminium Bahrain (Alba) said it stepped into the US$700 million club for the first time in its history, which Ali Al Baqali, Alba’s Chief Executive Officer, said is an “all-time record in our profits.”

“I am also pleased to report that since the beginning of October, we didn’t have any COVID-19 infection in our c. 3,200 strong workforce and no employee was quarantined tilldate,” added Baqali, as Alba posted a third-quarter profit.

Q3 profit was helped by higher revenues, partially impacted by higher selling and distribution expenses.

LME prices rise

Alba attributed its higher top line to higher LME prices (55% YoY in Q3 2021 and 46% YoY in 9 months of 2021), partially offset by lower sales volume (a drop of 7% YoY in Q3 2021 and 5% YoY in 9 months of 2021).

LME price rose to a 10-year high of US$2,700/MT driven by China supply disruptions, “a very strong demand, and a tight physical market”.

Middle East demand, Alba said, continued to remain strong, supported by higher demand in Bahrain and UAE.

Alba also reported a double-digit increase in World ex-China consumption (+16% YoY), Europe’s (+16% YoY), and North America’s (+13% YoY) – owing to a strong rebound in market recovery and economic activity.

Chinese consumption, according to Alba, is almost flat (+1% YoY) due to slow growth in the auto and construction market. BD125.9 m Q3 profit Third-quarter profit was BD125.9 million (US$335 m), up by 1,184% Year-over-Year (YoY), versus a loss of BD11.6 m (US$30.9 m) for the same period in 2020. Earnings per share were fils 89 versus a loss per share of fils 8 in the yearago quarter.

Total comprehensive income stood at BD126.4 m (US$336.1 m) versus a total comprehensive loss of BD11.7 m (US$31.1 m) – up by 1,181% YoY. Alba generated Q3 revenues of BD388.9 m (US$1,034.2 m) versus BD262.7 m (US$698.6 m) in Q3 2020 - up by 48% YoY.

Nine-month results

Nine -month profit was BD270.7 m (US$720 m), up by 1,320% YoY, versus a loss of BD22.2 m (US$59.1 m) for the same period in 2020.

Earnings per share were fils 191 versus loss per share of fils 16 for the same period in 2020.

Total comprehensive income was BD275.5 m (US$732.7 m), up by 974% YoY, compared to a total comprehensive loss of BD31.5 m (US$83.8 m) in the same period of 2020.

Revenue was BD1,061.5 m (US$2,823.2 m) versus BD782.6 m (US$2,081.5 m) in the same period of 2020 - up by 36% YoY.

Alba’s total assets as of 30 September 2021 were BD2,555.5 m (US$6,796.6 m) versus BD2,353.7 m (US$6,259.8 m) as of 31 December 2020 - up by 9%.