Alba hits record performance for second year in a row

TDT | Manama                                        

The Daily Tribune – www.newsofbahrain.com   

Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters, yesterday reported another year of strong operational growth and record financial performance despite market challenges and proposed a final dividend payout for the year 2022.

The Board of Directors proposed to pay a final dividend of Fils 85.7 per share (excluding the treasury shares) amounting to BD121,306,000 subject to approvals.

The year 2022, Alba said, has been volatile hurt by the impact of the Russia-Ukraine war, ongoing COVID-19 concerns in China, higher energy costs in Europe, rising interest rates, fears of recession and continuous supply-chain disruptions have taken their toll on the Aluminium market.

Looking ahead, the board, however, warns that the uncertain macroeconomic conditions, sparked by higher inflation and interest rates, supply-chain disruptions coupled with governments’ ability to continue providing stimulus, will cloud the Aluminium market Alba said that power shortages and surging energy costs in Europe and US are likely to increase output cuts while Chinese smelters’ output will rise at a slow pace.

It also foresees weak market sentiment and a firm US$ to weigh on LME Price. Prices will range between US$2,200/t – US$2,400/t.

Q4 results

The fourth quarter profit was BD39.4 m(US$104.9m), down by 78% Year-over-Year (YoY) versus a profit of BD181.2 m(US$481.8m) for the same period in 2021.

Earnings per Share was fils 28 for Q4 2022 versus fils 128 in the year-ago quarter. Total Comprehensive Income stood at BD36.6 m(US$97.3m) versus BD183 m(US$486.8m) – down by 80% YoY. Gross profit was BD80.6 m(US$214.3m) versus BD215.5 m(US$573.2m) in Q4 2021 – a drop of 63% YoY.

Revenue was BD 462.4 m(US$1,229.8m) versus BD523.3 m(US$1,391.7m) in the prior-year quarter – a drop of 12% YoY.

H1 results

Alba reported a Ful Year 2022 profit of B D 4 1 6 . 2 m(US$1,106.8m), down by 8% YoY, versus a profit of BD451.9 m(US$1,201.8m) for 2021. Earnings per Share was fils 294 versus fils 319 in 2021.

Total Comprehensive Income was BD452.7 m(US$1,204m), a drop of 1% YoY, compared to BD458.5 m(US$1,219.5m) for 2021. Gross Profit was BD545.6 m(US$1,451.1m) versus BD577 m(US$1,534.7m) in 2021 – a drop of 5% YoY.

Revenue stood at BD1,840.9 m(US$4,896.1m), up by 16% YoY, compared to BD1,584.8m(US$4,215m) for 2021.