Alba reports 3Q 2015 results; value-added sales remains a priority

Aluminium Bahrain B.S.C. (Alba) announced the release of its third quarter of 2015 results on Wednesday, November 11, 2015.

Alba’s total sales for the third quarter of 2015 were BD 184.4 million (US$ 490 million) versus BD 223.2 million (US$ 593 million) for the same period in 2014, a drop of 17% YoY due to lower LME prices. For the nine months of 2015, total sales totalled BD 590.3 million (US$ 1.57 billion), a decrease of around 2% YoY versus BD 599.6 million (US$ 1.60 billion) for the same period of 2014.

Net Income for the third quarter of 2015 dropped by 70% YoY to BD 8.7 million (US$ 23 million) versus BD 29.5 million (US$ 78 million) for the same period in 2014 due to lower LME prices. The company posted a Net Income of BD 75.7 million (US$ 201 million) for the nine months of 2015 versus BD 61.9 million (US$ 164 million), up by 22% YoY on the back of higher LME prices and physical premiums during the first six months of 2015.

Q3 2015 Alba Highlights:
• Alba wins the 2015 RoSPA Gold Award for Occupational Health and Safety.
• Alba was able to increase its sales (metric tonnes) by 2.5% YoY while production was up by 2.9% YoY on the back of strong operational performance.
• Sales of Value-Added products averaged 64% of total shipments in Q3 2015 versus 66% in Q3 2014.

Q3 2015 Alba Priorities:
• Continuous Focus on Safety, Training & Development Initiatives
• Deliver on Project Titan target
• Sustained Focus on Value-Added Sales
• Increase creep-up capacity with minimal capital investment
• Line 6 Expansion Project

The Board recommended an interim cash dividend of 5.5 Fils per share, which is BD 7.77 million (US$ 21 million) paid on September 1, 2015 to eligible shareholders.

Commenting on Q3 results, the Chairman of Alba’s Board of Directors, Sh. Daij Bin Salman Bin Daij Al Khalifa said: “In light of low LME prices, the company will continue to push the limit on its operational performance all the while by remaining cost competitive.”

Alba’s Chief Executive, Tim Murray added: “Despite the collapse of all-in-aluminium prices, Alba has been able to maintain its strong intrinsic performance in a challenging market.”