Alba Q1 profit jumps on higher LME prices

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Driven by higher LME prices, Aluminium Barain yesterday reported a 181% jump in the first quarter 2022 profit, partially offset by lower sales volume. The company also said it sees new “challenges for commodities” from the Russo-Ukrainian war while the world has started to recover from the COVID-19 pandemic.

“Markets for commodities, foreign exchanges, equities and debt are adjusting to the shock of war and the uncertainty. There will be severe economic consequences for Ukraine and Russia and, potentially, the global economy,” Alba said.

Q1 results

Profit for the first quarter was BD146.8 million (US$390.4 m), up by 181% Year-over-Year (YoY), versus a Profit of BD52.2 m (US$138.8 m) for the same period in 2021. Alba’s top line was driven by higher LME prices (56% YoY) and partially offset by lower sales volume (-0.3% YoY).

Earnings Per Share was fils 104 versus fils 37 for the same period in 2021. Total Comprehensive Income stood at BD156 m (US$415 m) versus BD58.4 million (US$155.4 m) for the same period in 2021 -- up by 167% YoY.

Gross Profit was BD178 m (US$473.4 m) versus BD80.5 m (US$214.1 m) for the same period in 2021 -- up by 121% YoY. With regards to the Revenue, Alba generated BD455 m (US$1,210 m) versus BD302.7 m (US$805.1 m) in Q1 2021 -- up by 50% YoY.

Bottom-line for Q1 2022 was driven by a higher topline and partially impacted by higher Selling and Distribution Expenses. In the Middle East, demand was up by 5% YoY supported by higher consumption in Bahrain (+7% YoY), UAE (+5% YoY) & KSA (+5% YoY).

Middle East supply was up by 4% YoY (Bahrain up by 1% & UAE by 7% YoY) World market deficit softened on slower global demand growth with China (-0.05 million MT) and w/o China (-0.4 million MT) Sales’ volume topped 354,216 metric tonnes (MT), down by 0.3% YoY while Production reached 391,050 MT, up by 2.4% YoY Value-Added Sales averaged 65% of the total shipments versus 62% in Q1 2021 [VAP: 230,467 MT up by 5.4 % YoY]