Alba’s revenue up by 16% Y-o-Y to $1382.9 million in H1 2020, thanks to higher sales volume

Aluminium Bahrain B.S.C. (Alba) has released financial results for the second quarter of 2020 and the first half of the year. The leading aluminium producer’s (ex-China) performance was impact by lower LME price, which was partially offset by higher sales’ volume.

The company reported a gross profit of BD21.6 million (US$57.6 million) in Q2 2020, up by 41 per cent from BD15.4 million (US$40.9 million) during the same period last year. With this, the company’s gross profit in the first half of the year totalled BD55.2 million (US$146.8 million), up by 241% Y-o-Y from BD16.2 million (US$43.2 million).

Alba reported a total comprehensive loss of BD19.8 million (US$52.7 million) in H1 2020, up by 4 per cent, compared to a total loss of BD19.1million (US$50.9 million) in H1 2019. In Q2 2020, the company’s total comprehensive loss stood at BD18.2 million (US$ 48.4 million), up by 446% YoY from BD 3.3 million (US$ 8.9 million) loss during the same period last year.

Alba’s revenue from Contracts with Customers in the second quarter of 2020 was BD244 million (US$649 million), down by 0.4% Y-o-Y from BD245 million (US$651.8 million). The total revenue in H1 2020 reached BD519.9 million (US$1,382.9 million), up by 16% Y-o-Y, compared to BD448.6 million (US$1,193 million) for the same period in 2019.

Total Equity as of June 30, 2020, stood at BD 1,057.1 million (US$ 2,811.5 million), down by 2 per cent, versus BD 1,078.6 million (US$2,868.6 million) as of December 31, 2019. Alba’s Total Assets as of June 30, 2020, topped BD 2,380.7 million (US$6,331.7 million) versus BD 2,420.2 million (US$6,436.8 million) as of December 31, 2019 - down by 2 per cent.

Alba’s sales’ volume topped 390,750 tonnes, up by 25 per cent Y-o-Y, while production reached 378,558 tonnes, up by 24 per cent over the year. Value added sales averaged 34% of the total shipments.

 Alba’s primary goals for 2020 include the production target of 1,540,000 tonnes, obtain Value-Added Sales’ Qualification with Aluminium Stewardship Initiative (ASI) and Ecovadis certifications, and complete SPL Treatment Plant and Port Upgrade as per timeline.

Commenting on Alba’s financial performance for the second quarter of 2020, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa stated: “As COVID-19 unfolds, we continue to focus on adapting to the new life norm and keeping our people safe as we navigate together through this crisis. Despite the challenging market conditions, we are unlocking our strength as we aim to close 2020 by meeting our Production Target of 1,540,000 metric tonnes.”

Adding further, Alba’s Chief Executive Officer, Ali Al Baqali said: “Today, the world is going through radical transformation and the Aluminium industry is not an exception. Despite the odds, we have been able to maintain a stable performance by delivering on our commitments. In the face of this crisis, we choose to get better by capitalising on our Safety culture and operational resilience which has led us to achieve more than 24 million safe working-hours without LTI as of to-date.”