Alba registers drop in revenue in Q1 2019 on lower LME prices, sales volume up 2%

Alba published its financial results for the first quarter of 2019. The company’s top-line and bottom-line were primarily impacted by 14% year-over-year decrease in LME prices.

With regards to Total Sales/Revenues, Alba generated BD 203.5 million (US$ 541.3 million) in Q1 2019, down 8% YoY. Alba’s Total Assets as of March 31, 2019 stood at BD 2,259.9 million (US$ 6,010.3 million).

The company reported a net loss of BD 15.8 million (US$ 42 million) in Q1 2019 compared to a net profit of BD 33.9 million (US$ 90 million) in Q1 2018, down 147% year-over-year. Gross Profit stood at BD 0.850 million (US$ 2.3 million, down 98% from BD 40 million (US$ 106.3 million) for the same period last year.

Alba closed the quarter with Value-Added (VA) sales averaging 52% of total shipments. The company’s sales volume reached 257,113 tonnes in Q1 2019, an increase of 2% YoY. Production stood at 272,707 tonnes, up 5% YoY.

The top priorities for 2019 include continued focus on Safety ‘Launch of Safety Gateway Campaign’, deliver on Project Titan - Phase IV [US$ 40 million by end of 2019], focus on Value-Added Sales, develop upstream opportunities on Alumina and complete Line 6 ramp-up safely in early Q3 2019.

Alba’s financial performance in Q1 2019, Alba’s Chief Executive Officer Tim Murray stated: “Despite the bearish market sentiment and lower LME prices, Alba continues to outperform its industry peers. We are also targeting to complete the ramp-up of Line 6 in the 3rd quarter of 2019 which will provide a significant boost to our bottom-line.” 

In addition, the Board of Directors approved the Executive Management changes as part of its ongoing succession plan: Mr. Tim Murray, the current Alba CEO, will step-down on 31st July 2019 to relocate to the United States and Mr. Ali Al Baqali, the current Deputy CEO, will be appointed as acting CEO effective 01st August 2019. As part of this transition, Mr. Murray will continue with the Company as an advisor to the Alba’s Board Chairman.

The Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “I would like to thank Tim for his many years of service in Alba. Over the past 7 years as Alba’s CEO, Tim transformed the Company’s Safety culture. He also played an instrumental role in the success of Line 6 Expansion Project which started ahead of schedule in December 2018. We wish Tim all the best as he returns to his family.”

“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. 

I also take the opportunity to congratulate Ali Al Baqali on his planned appointment to acting CEO of Alba. Ali brings many years of leadership from within the Company and I look forward to a smooth transition."