Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter ex-China, has declared a steep growth in its financial landscape for the second quarter of 2024, owing to increased sales and higher global aluminium prices. After a year-on-year downfall in Q1 fiscal output, Alba has recovered all its backlogs in Q2 with a revenue of BD407 million (US$1,082.3 million), up by 5.2 per cent year-on-year from BD387 million (US$1,029.4 million).
The company’s profit stood at BD68.5 million (US$182.2 million) in Q2, experiencing a skyrocketing surge of 129.2 per cent year-on-year versus a profit of BD29.9 million (US$79.5 million). Sequentially, the profit soared by 179.6 per cent from BD24.5 million (US$65 million).
The company’s basic and diluted earnings per share was fils 48, compared to fils 17 in Q1 2024 and fils 21 in Q2 2023. The total comprehensive income in the second quarter of 2024 was BD66.7 million (US$177.4 million), up by 104.5 per cent from BD32.6 million (US$86.8 million) a year ago. Gross profit for Q2 was BD102 million (US$271.2 million) – 50.1 per cent higher than BD67.9 million (US$180.6 million) during the corresponding period of the previous year.
Financial results for H1
Alba reported that the financial gains in Q2 led the company’s profit to BD93 million (US$247.3 million), up by 20.2 per cent Y-o-Y from BD77.4 million (US$205.7 million). The company’s basic diluted earnings per share amounted to fils 66, compared to fils 55 for the same period in 2023.
Total comprehensive income for H1 was BD94.4 million (US$251 million), undergoing a surge of 35.4 per cent over the year, compared to BD69.7 million (US$185.4 million). However, the revenue dropped by 2 per cent Y-o-Y, totalling BD741.5 million (US$1,972.1 million) in H1 2024 versus BD757 million (US$2,013.2 million) in H1 2023.
Alba’s total assets at the end of June 2024 were BD2,631.1 million (US$6,997.5 million), up by 3 per cent from BD2,553.6 million (US$6,791.4 million).
Operational highlights
Alba’s sales volume topped 397,538 tonnes in Q2 2024, up by 9.43 per cent Q-o-Q from 363,283 tonnes and 1 per cent higher Y-o-Y. Value-added product sales stood at 288,312 tonnes in Q2, accounting for 73 per cent of the total sales.
However, Alba’s production slightly decreased by 0.5 per cent Y-o-Y to reach 403,747 tonnes.
Despite the extraordinary growth in financial and operational results in the second quarter, Alba feels uncertainties for short-term prospects owing to bearish buying sentiment among the end-user sectors amid increasing global production, exerting downward pressure on LME prices. Alba expects LME prices to range between US$2,200 and US$2,400 per tonne in the near term.
Commenting on the company’s performance for the second quarter of 2024, the Chairman of Alba’s Board of Directors, Khalid Al Rumaihi, stated: “Building on our Q1 performance and despite navigating a challenging market landscape marked by depressed premiums, we are pleased to report another quarter of solid results thanks to our dedication to operational excellence. This performance has enabled us to return value to shareholders through an interim cash dividend of US$70 million.
Alba’s Chief Executive Officer, Ali Al Baqali, added: “The aluminium industry continues to face economic headwinds. However, focusing on the aspects within our control has enabled us to navigate these challenges while positioning ourselves for sustained growth when market conditions improve. Our recent achievement of 22 million safe working hours without a Lost Time Injury is a testament to our team’s dedication to Safety, a core value at Alba. This Safety milestone is directly linked to our overall operational performance and contributes significantly to our success.”
Responses
