Aluminium Bahrain (Alba), a global aluminium-producing giant, faced headwinds in 2023. Despite navigating through volatile LME prices and fluctuating premiums, Alba reported a Q4 profit of BD23.4 million ($62.2 million), a 40.7% Y-o-Y decrease from a profit of BD39.4 million (US$104.9 million) for the same period in 2022.
The 2023 full-year profit of BD118 million ($313.9 million) marked a 71.6% Y-o-Y downturn from a livid annual profit of BD416.2 million (US$1,106.8 million) in 2022.
Alba's 2023 financial overview - Q4 2023 performance
Alba's Q4 2023 profit reached BD23.4 million ($62.2 million), down 40.7% Y-o-Y. Earnings per share dropped from Fils 28 to Fils 17. Total Comprehensive Income fell to BD6.2 million ($16.5 million), a 74.6% Y-o-Y decline.
For the entire year, Alba reported a profit of BD118 million ($313.9 million), marking a significant 71.6% Y-o-Y decrease. Basic and Diluted Earnings per share dropped to fils 83, and Total Comprehensive Income decreased by 75.8% Y-o-Y to BD106.7 million ($283.8 million).
Alba's financial metrics
Total Equity as of December 31, 2023, was BD1,789.2 million ($4,758.6 million), down 1.8% Y-o-Y. Total assets stood at BD2,553.6 million ($6,791.4 million), a 2.4% decrease from December 31, 2022.
Alba's financials were impacted by lower LME prices (down 5.8% Y-o-Y in Q4 2023 and 16.8% for the full year) and decreased premiums (down 34.1% Y-o-Y in Q4 2023 and 35.3% for the full year).
Alba's strategic response - Dividend distribution
The Board of Directors vouched for a cash dividend for 2023, subject to shareholder approval. The proposed dividend, 29.18% of the share's nominal value, is equivalent to Fils 29.18 per share, totalling BD41,314,159.
The Chairman of Alba's Board of Directors, Khalid Al Rumaihi, while talking about the company's 2023 annual financial performance, projected: "While navigating market headwinds in 2023 with volatile LME prices and fluctuating premiums, we are pleased that Alba not only delivered higher sales volume but also achieved overall good performance."
"Despite these external factors, the company's robust operational performance in 2023 demonstrates its resilience and potential for stronger financial results in a more favourable environment, Khalid Al Rumaihi added.
"Having refreshed our strategy for 2024-2026, we will be able to position Alba for continuous success amidst market challenges while transforming challenges into opportunities," he concluded.
Alba's Chief Executive Officer (CEO), Ali Al Baqali, commented: "I'm incredibly proud of our team for doing more than necessary in a tough year for the aluminium industry. While bearish market sentiment presented significant challenges, our collective efforts on cost management and operational optimisation enabled us to achieve good results despite lower LME prices and premiums and close 2023 with 12 million safe working hours without LTI."
Alba, amidst adversities, remains optimistic about its future. With a refreshed strategy for 2024-2026, the company aims to turn challenges into opportunities, positioning itself for continuous success.
Alba, a leading aluminium smelter, faced a challenging 2023 marked by volatile market conditions. Despite a 40.7% Y-o-Y decrease in Q4 profits and a significant 71.6% Y-o-Y downturn for the full year, Alba remains resilient. The strategic response includes a recommended cash dividend and a refreshed strategy for 2024-2026. If the world of aluminium is where your foray lies, go ahead and take a look at AL Circle's special report, Aluminium Industry Outlook 2024, for a detailed purview of the prevalent conditions.
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