Alba announces Q2 and H1 profits, interim cash dividend

TDT | Manama        

The Daily Tribune – www.newsofbahrain.com

Aluminium Bahrain (Alba) reported a profit of BD29.9 million ($79.5 million) for the second quarter of 2023, down by 83.6% Year-over-Year (YoY), versus BD181.9 million ($483.9 million) for the same period in 2022.

Earnings per Share was fils 21 for Q2 2023 versus fils 128 in Q2 2022. Total comprehensive income stood at BD34.4m ($91.5 million) versus BD201.9m ($536.9 million) – down by 83% YoY.

Gross profit was 67.9m ($180.6 million) versus BD208m ($553.2 million) for the same period in 2022 – down by 67% YoY. Revenue from contracts with customers was BD387 million ($1,029.3 million) versus BD520.4m ($1,384 million) in Q2 2022 - down by 25.6% YoY.

For first half, Alba reported a profit of BD77.4m ($205.7 million), down by 76.5% YoY versus a Profit of BD328.7 million ($874.3 million) for the same period in 2022. Earnings per Share was fils 55 for versus fils 232 for the same period in 2022.

Total comprehensive income was BD79.8 million ($212.2 million), down by 78% YoY, compared to BD357.9 million ($951.8 million) in H1 2022. Gross profit was BD147.8 million ($393 million) versus BD386 million ($1,026.7 million) in H1 2022 – down by 62% YoY.

Alba generated revenue from contracts with customers of BD757 million ($2,013.2 million) versus BD975.3 million ($2,593.9 million) in H1 2022 - down by 22.4% YoY. Alba board proposed to pay an interim cash dividend of Fils 13.28 per share (excluding the treasury shares) amounting to BD18,801,617 to Alba’s shareholders.

"Our production reached 405,628 metric tonnes (MT), an increase of 9,085 (MT) versus Q2 2022 - Our Sales’ volume topped 392,258 MT, up by 3,816 MT versus Q2 2022 - Value Added Products touched 70% of Total Sales (70% in Q2 2022) underlining a solid demand for these Products.

This performance would have allowed us to beat Q2 2022 financial performance if LME prices and premia were to remain the same (LME prices and premia combined have dropped by 61% Year-over-Year). Our financial resilience has allowed us to return capital to our shareholders with Fils 13.28 per share as interim cash dividend amounting to BD18,801,617.

As we look forward, we remain optimistic to stay on course as we progress with Line 7’s Feasibility Study", said Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa. Alba’s Chief Executive Officer, Ali Al Baqali said: "In a changing macroeconomic landscape, we remain focused to deliver on what we really have control on: Safety, Productivity and Cost."

Looking forward, Alba also said the market uncertainty will continue to cloud the Aluminium market and LME prices [no sign of demand recovery in Asia, Europe and  in the short-run). Bearish market sentiment will continue to weigh on Aluminium market and LME prices will range between $2,100/t –$2,200/t for the remainder of the year.