Alba achieves 665% higher profit YoY with highest-ever production of 773,887 tonnes during 2Q2021

Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter outside China, has reported a year-on-year increase of 665 per cent in Profit to BD92.6 million (US$246.2 million) for the second quarter of 2021, in comparison with a Loss of BD16.4 million (US$43.6 million) during the same period last year. The company also reported a Total Comprehensive Income of BD90.6 million (US$241.1 million) for 2Q2021 versus a Total Comprehensive Loss of BD18.2 million (US$48.4 million) in 2Q2020.

For the first half of the year, Alba has reported a Profit of BD144.8 million (US$385 million), up by 1,461 per cent Y-o-Y compared to a Loss of BD10.6 million (US$28.3 million) for the same period in 2020. The revenue generation in H1 2021 was BD672.7 million (US$1,789 million) versus BD520 million (US$1,383 million) in H1 2020.

The surge in profit was primarily 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). Also, V-Shaped Economic Recovery was a contributing factor to the financial growth. Consumption of aluminium produced by Alba in North America increased 49 per cent year-on-year, with manufacturing activity reaching all-time high.

World (ex-China) consumption grew 33 per cent year-on-year, while that in Europe increased 29 per cent.

Alba’s sales volume topped 388,149 tonnes in Q2 2021- down by 1 per cent over the year, while production reached 391,954 million tonnes, up by 3.5 per cent on year. Value Added Sales averaged 65 per cent of the total shipments.

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.”

Alba achieved the highest-ever production of 773,887 tonnes in the second quarter of this year, while value-added sales reached new heights of 472,323 tonnes.

Alba’s Chief Executive Officer, Ali Al Baqali, added: “Despite the COVID-19 challenge and global logistics’ issue, Alba has set new benchmarks in its 5 decades of commercial operations: higher production, higher EBITDA and higher Net Profit ever achieved in 6-months period. This unparalleled operational and financial performance is defined by our strong results rather than our attributes. Our results speak louder than words and this strong comeback on all fronts would not have been made possible without the resilience of our workforce and for ‘Thinking First, Safety Always.”