Alba posts 228% H1 profit growth while Q2 aluminium output declines 61%

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Aluminium Bahrain B.S.C. (Alba) reported sharply higher earnings for the first half of 2026, supported by stronger aluminium prices despite production curtailments and supply chain disruptions during the second quarter.

The Bahrain-based aluminium producer posted a profit attributable to equity holders of BHD 140.2 million (USD 372.8 million) for the six months ended June 30, 2026, compared with BHD 42.7 million (USD 113.5 million) in the corresponding period of 2025, representing a 228 per cent year-on-year increase.

Basic and diluted earnings per share rose to 99 fils from 30 fils in H1 2025, while total comprehensive income climbed 264 per cent to BHD 140.6 million (USD 374 million) from BHD 38.6 million (USD 102.8 million) a year earlier.

For the second quarter alone, profit attributable to equity holders increased 164 per cent year-on-year to BHD 64.9 million (USD 172.5 million) from BHD 24.6 million (USD 65.4 million) in Q2 2025. Total comprehensive income for the quarter rose 195 per cent to BHD 64.5 million (USD 171.5 million).

Alba said stronger aluminium prices and favourable market conditions supported the improved financial performance. The company also reported shareholders' equity of BHD 2.16 billion (USD 5.7 billion) as of June 30, 2026, up 4 per cent from the end of 2025, while total assets increased 9 per cent to BHD 2.87 billion (USD 7.6 billion).

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Aluminium market remains supportive

According to the company, global aluminium demand grew by around 1 per cent year-on-year during the second quarter, driven by the automotive, renewable energy, infrastructure, power transmission and data centre sectors.

Global aluminium supply, however, contracted by around 1 per cent, mainly because of production disruptions in the Middle East. As a result, the global aluminium market remained in deficit, with an estimated shortfall of 934,000 tonnes including China and 626,000 tonnes excluding China.

Average London Metal Exchange (LME) aluminium prices increased 46 per cent year-on-year to USD 3,576 per tonne, supported by supply disruptions and lower inventories. Regional aluminium premiums also strengthened, while LME inventories declined 13 per cent year-on-year to 302,000 tonnes, reflecting tighter physical metal availability.

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Production affected by regional tensions

During the second quarter, Alba's sales volume declined 32 per cent year-on-year to 280,799 tonnes, while net finished aluminium production fell 61 per cent to 155,469 tonnes.

The company attributed the lower production primarily to the controlled shutdown of Lines 1, 2 and 3 in response to regional tensions and raw material availability constraints.

Despite lower output, value-added products (VAP) continued to account for a significant share of shipments. VAP volumes reached 195,891 tonnes, representing 70 per cent of total shipments, reflecting the company's continued focus on higher-value aluminium products.

Alba said it optimised alumina utilisation and managed inventories and supply chain flows to maintain stable smelter operations during the disruption. The company added that these measures have positioned it to respond quickly as raw material availability and market conditions improve.

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Outlook and strategic priorities

Looking ahead, Alba expects aluminium prices to remain supported by constrained global supply, although macroeconomic uncertainty and geopolitical developments are likely to continue influencing the market.

The company said it will continue prioritising safe and reliable operations while maintaining flexibility to respond to evolving supply chain conditions. It also plans to advance the proposed acquisition of Aluminium Dunkerque, subject to regulatory approvals, alongside strategic projects including Alba Daiki Sustainable Solutions (ADSS).

Alba will also continue expanding its portfolio of value-added and certified low-carbon aluminium products while progressing its decarbonisation roadmap in line with Bahrain's net-zero ambitions.

Commenting on the results, Chairman Khalid Al Rumaihi said, "Alba delivered a resilient financial performance despite a challenging operating environment marked by regional tensions and supply chain disruptions.”  Chief Executive Officer Ali Al Baqali said,  "The actions taken during the quarter were guided by a clear priority: safeguarding our people, assets and long-term operational capability.” He added, “Through disciplined production curtailments and rigorous management of raw material flows, we maintained operational stability despite unprecedented supply chain challenges. Importantly, the steps taken have preserved the flexibility needed to support a swift recovery as conditions improve."