Alba net income for Q3 2016 up 65%YoY

Aluminium Bahrain B.S.C (Alba) presents its financial results for Q3 2016 on Sunday November 13, 2016.

Q3 2016 Alba Highlights:

• Alba boosted its sales volume by 3.1% YoY and production by 2.4% YoY
• Alba value-added sales volume was an average 58% of total shipments
• Alba saves US$56 per ton YTD on Project Titan Phase II development work, which is on track
• Alba continued with their work safety ethics with the launch of Safety Campaign ‘Safety at the Heart of Alba’
• Line 6 quarterly update:

    o Closing of US$1.5 billion syndicated term-loan facility
    o PS5 EPC contract awarded to GE and GAMA Consortium
    o L6 Power Distribution System (PDS) awarded to Siemens

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Total sales for Q3 2016 dropped 5% YoY to BD 174.3 million (US$ 463.5 million) compared to BD 184.4 million (US$ 490.4 million) in Q3 2015. The drop was primarily due to a fall in premium prices. For the first three quarters of 2016, total sales was amounted to BD 496.5 million (US$ 1.32 billion), a drop of 16% YoY from BD 590.3 million (US$ 1.57 billion) for the same period of 2015. The fall is attributed to a drop in LME and premium prices.

Net Income for Q3 2016 increased by 65% YoY to BD 14.3 million (US$ 38.1 million) in comparison to BD 8.7 million (US$ 23 million) in Q3 2015. The company posted a Net Income of BD 34.8 million (US$ 92.6 million) for the first three quarters of 2016 versus BD 75.7 million (US$ 201 million), down by 54% due to lower LME and premium prices.  

Commenting on Q3 results, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:
“I would like to thank all our employees and contractors on completing a safe summer. Alba continues to raise the bar in a challenging environment and was able to maintain its performance on many fronts.
And as we move ahead, we look forward to secure the ECA financing tranche for Line 6.”

Alba’s Chief Executive Officer, Tim Murray complemented his view in his statement: “Alba was able to raise Net Income on the back of a solid operational performance despite a relatively weak physical premium environment. Alba, also, had a successful and safe summer and I would like to thank our workforce for all their efforts.”

Alba also has listed its priorities for 2016:

• Continuous Focus on Safety Initiatives & Talent Management
• Deliver on Project Titan - Phase II
• Increase Value-Added Sales
• Line 6 on Schedule
• FInalize Line 6 ECA financing by Q1 2017

As reported by Alba, World consumption was up by 5% YoY while production up by 3% YoY, demand in Asia rose by 6% YoY mainly supported by Chinese Consumption (7% YoY). MENA consumption remains strong (6.5% YoY) driven by growing investment in infrastructure in Saudi Arabia alone (20% YoY). Europe demand up by 2% YoY while consumption in North America remains flat at 1.5% YoY.

Alba Management would hold a conference call on Monday November 14, 2016 to discuss Alba's Q3 2016 Financial Results as well as outline the company's priorities for the REST OF 2016.

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