Alba combats COVID crisis with strongest financial performance in its 5 decades: Profit soars to BD451.9M with sales’ volume 1,550,857t

Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter outside China, has reportedly launched its four-quarter and full-year 2021 financial results, whereby it has declared a profit of BD181.2 million (US$481.9 million) for 4Q2021. That was an increase of 466 per cent from a profit of BD32 million (US$85.1 million) during the same period last year.

Gross profit for 4Q2021 was BD215.5 million (US$573.1 million), which reflected a rise of 259 per cent from BD60.1 million (US$159.8 million). Alba also reported that its total comprehensive income during Q4 2021 was BD183million (US$486.7 million), a surge of 455 per cent from BD32.9 million (US$87.8 million) a year ago.

For the full-year of 2021, Alba has reported a profit of BD451.9 million (US$1,202 million) in contrast to BD9.7 million (US$26 million) for 2020. Alba’s total comprehensive earning for the full-year was BD458.5 million (US$1,219.4 million), incredibly higher than BD1.45 million (US$3.9 million) in the previous year. Gross profit was BD577 million (US$1,534.6 million) versus BD141 million (US$375 million) in 2020.

Coming to revenue, Alba generated BD523.3 million (US$1,391.8 million) in Q4 2021, up by 88 per cent from BD278.8 million (US$741.5 million) in Q4 2020. For the full year, revenue totalled BD1,584.8 million (US$4,214.9 million), an increase of 49 per cent from BD1,061.4 million (US$2,822.9 million) in 2020.

Alba’s robust financial results could be attributed to the higher LME prices that grew 44 per cent in Q4 2021 and 45 per cent in full-year. Strong rebound in global demand for aluminium, together with strong market recovery and economic activity, also drove Alba’s success.

Alba closed the year 2021 with an all-time record production of 1,561,222 tonnes and sales’ volume of 1,550,857 tonnes despite logistics’ challenges. Value-Added Sales averaged 63 per cent of the total shipments vs. 44 per cent in 2020.

Alba, in its financial report, has also mentioned some of its notable activities in 2021. For instance, collaboration with a top-class consultant to develop a fully-fledged ESG roadmap in line with Bahrain’s objectives towards ‘Net Zero Emissions’ by 2060, launch of plant-wide Environment, Social, and Governance (ESG) Campaign ‘Shaping Our Future’ on 24 Oct’21, and commission of Spent Pot Lining (SPL) Treatment Plant, an Environmental Conservation Project, first-of-its-kind in the region on 12 Dec’21.

Commenting on Alba’s exceptional financial performance for the full year of 2021, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, stated: “2021 marked our Golden Jubilee of Operations and Alba’s best financial performance ever recorded in its 5 decades.”

Adding further, Alba’s Chief Executive Officer, Ali Al Baqali, said: “Our strong finish in 2021 reflect our disciplined approach to go the extra mile and exceed our own expectations despite the unprecedented challenges we faced with COVID-19 and logistics. This better-than-anticipated top line performance combined with our lean cost mindset allowed us to give back to our shareholders and reduce our overall debt position.”