Alba Net Income in H1 2018 surges by 46% YoY to BD 62.9 million

Alba’s top-line and bottom-line for the second quarter and first-half of 2018 were primarily driven by higher sales volume, higher LME prices (an increase of 18% Year-over-Year (YoY)) and the impact of Line 5 recovery in Q2 2017.

The Company generated a Net Income of BD 29.1 million (US$ 77.4 million) in the second quarter of 2018 versus BD 17.7 million (US$ 46.9 million) for the same period in 2017, up by 65% YoY. With regards to Total Sales/Revenues, Alba reported BD 244.0 million (US$ 648.9 million) in Q2 2018, up by 36% YoY, compared to BD 179.3 million (US$ 476.9 million) in Q2 2017. Earnings per share (EPS) in this quarter were fils 21 versus fils 12 in Q2 2017.

With regards to the first half of 2018, Alba’s Net Income stood at BD 63.0 million (US$ 167.5 million), an increase of 46% YoY, compared to BD 43.3 million (US$ 115.0 million) in H1 2017. Total Sales/Revenues reached BD 465.2 million (US$ 1,237.4 million), up by 26% YoY, compared to BD 369.7 million (US$ 983.3 million). Earnings per share were fils 44 versus fils 31 in H1 2017.

Q2 2018 Alba Highlights

• Production up by 23% YoY (252,081 mt) while Sales volume up by 19% YoY (249,595 mt); Alba Value-Added Sales averaged 60% of total shipments in Q2 2018
• Impact of higher Alumina prices
• The achieved benefits of Titan – Phase III are US$ 81/MT
• Line 6 Expansion Project in progress:
• Closed first part of 2ndtranche ECA-covered facilities (EUR 204.5 million)
• Line 6 Smelter [overall progress > 61%]
• Power Expansion Project [PS 5 & PDS overall progress: 63% & 91%]

2018 Alba Priorities

• Continued focus on Safety initiatives
• Deliver on Project Titan -Phase III [2018: 1 Million MT & US$ 60/t]
• Leverage strong demand on Value-Added Sales
• Focus on future upstream opportunities
• Prepare for the start-up of Line 6
• Close final part of 2ndECA-covered facility tranche
• Award remaining packages within 2nd half of 2018

Commenting on Alba’s sound financial performance in H1 2018, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:

“Alba delivered a strong performance in the first half of 2018. As we are half-way through the year, we remain fully committed to achieve our targets on the Line 6 Expansion Project.”

Alba’s Chief Executive Officer, Tim Murray added:

“Safety continues to be our #1 priority as we move into the difficult summer months.

As we are facing many headwinds in the market in particular the impact of higher Alumina prices, we will be focused on our Project Titan Program as well as increase our production to offset the market challenges in the 2nd half of this year.”