Alba sees a twofold growth in Q3 profit on higher aluminium prices and sales volume

Aluminium Bahrain B.S.C. (Alba) has reported a twofold increase in its Q3 profit for the calendar year ending December 31, 2024. Registering a 215 per cent hike Y-o-Y, Alba’s profit in the September quarter stood at BD54.5 million (US$145 million) versus BD17.3 million (US$46 million) in Q3 2023.

Image Souce: Aluminium Bahrain

The company’s aggregated year-to-date profit amounted to BD147.5 million (US$392.2 million), marking a Y-o-Y increase of 55.8 per cent from BD94.6 million (US$251.7 million).

Alba revealed that its comprehensive income for Q3 2024 was BD51 million (US$135.6 million), up by 145.7 per cent from BD20.8 million (US$55.2 million) during the corresponding period of the previous year. The company’s total comprehensive income in nine months was BD145.3 million (US$386.5 million), up by 60.7 per cent Y-o-Y from BD90.5 million (US$240.6 million).

Alba’s gross profit for Q3 2024 also demonstrated a year-on-year rise from BD48.6 million (US$129.3 million) to BD83.4 million (US$221.8 million). In nine months, it grew by 23.5 per cent from BD196.4 million (US$522.3 million) to BD242.6 million (US$645.2 million).

The revenue generated in Q3 was BD433.5 million (US$1,152.8 million), up by 8.4 per cent annually from BD400 million (US$1,063.7 million). Year-to-date, the revenue totalled BD1,175 million (US$3,125 million), up 1.6 per cent from BD1,157 million (US$3,077 million).

Alba also reported that its Basic and Diluted Earnings per Share was fils 39 in Q3 2024 compared to fils 12 for the same period of 2023.

According to Alba, the company’s robust financial success was primarily driven by the surge in aluminium prices on LME, which increased by 4 per cent in nine months and 11 per cent in Q3 over a year. However, the results were partially offset by a 2 per cent Y-o-Y growth in Q3 premiums versus the same period in 2023.

Operational highlights

Substantial sales volume of primary aluminium supported Alba’s staggering fiscal growth for Q3 and nine months of 2024. In Q3, Alba’s primary aluminium sales increased by 0.2 per cent Y-o-Y, reaching 431,220 tonnes, while the sales in total nine months amounted to 1,192,041 tonnes, up by 0.8 per cent Y-o-Y.

However, in contrast, the company’s production dropped 2 per cent Y-o-Y in Q3 to 402,568 tonnes, and that in nine months dipped 0.1 per cent to 1,212,209 tonnes.

Global scenario

Alba, in its financial results, also highlighted demand growth for aluminium across various parts of the world, bolstered by positive market sentiment following China’s economic stimulus measures and the US Federal Reserve’s interest cut. Alba noted that aluminium demand in the Middle East grew by 5 per cent Y-o-Y, supported by higher consumption in Bahrain and the Kingdom of Saudi Arabia. In North America, demand rose 4 per cent, but dropped by 1 per cent in Europe.

Alba speculates the global market will remain uncertain while the US Federal interest cuts and Chinese stimulus measures will continue to provide short-term support. Demand, according to the company, looks lacklustre for Q4, and supply conditions remain constrained with China’s production cap.