Alba's gross profit dropped 51% in the first three quarters of 2019 on lower LME price and premium

Alba has released financial results for Q3 2019 and nine months of 2019. The leading aluminium producer’s performance was impacted by lower LME price and premiums in the quarter, which was partially offset by higher sales volume.  

The company reported a profit and total comprehensive income of BD10.7 million (US$28.5 million) in Q3 2019 compared with BD14.3 million (US$38.1 million) for Q3 2018, down by 25% YoY. The company posted a gross profit of BD29.2 million (US$77.6 million) compared with BD19.0 million (US$50.6 million) in Q3 2018, up by 53% YoY.  Alba reported revenue of BD287.1million (US$763.6 million) in Q3 2019, up by 22% YoY, compared with BD234.5 million (US$623.8 million) in Q3 2018.

Alba reported a total comprehensive loss of BD8.4 million (US$22.4 million) in nine months of 2019, down by 111% YoY, compared to a total comprehensive income of BD77.2 million (US$205.6 million) for the same period in 2018. The company’s gross profit dropped 51% to BD45.4 million (US$120.9 million) versus BD93.3 million (US$248.3 million) for the same period of 2018. Total sales/revenues were up by 5% to BD735.7 million (US$1,956.6 million),

Alba’s total assets on 30 September 2019 stood at BD2,425.1 million (US$6,449.7 million) versus BD2,208.7 million (US$5,874.3 million) as at 31 December 2018, up by 10% YoY.

Commenting on Alba’s financial results, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, said:

“Despite downbeat economic and market sentiments, we were able to lock-in positive profitability in Q3 thanks to the progressive ramp-up of Line 6. We look positively into the future as we stand at the threshold of becoming the world’s largest aluminium smelter with Line 6 fully going on-stream soon.”

Alba’s Acting Chief Executive Officer, Ali Al Baqali added:

“…we aim to finish 2019 strong by achieving for the first-time a production of 1.35 million metric tonnes and exceeding 15 million working-hours without LTI – another first in Alba’s history.”

Alba reported a double-digit growth for sales’ volume & production in Q3 2019. Sales’ volume reached 376,025 MT - up by 51% YoY while Production topped 385,396 MT - up by 53% YoY

Alba completed 98% of its Line 6 smelter project and 97% of the power expansion project. In 2019 Alba will continue to focus on safety and Project Titan and get ready for Line 6 Inauguration on 24 November 2019.