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29 APRIL 2020 AL CIRCLE

COVID-19 impact: QAMCO’s revenue drops 14% YoY in the first three months

EDITED BY : HEENA IQBAL 2MINS READ

Qatar Aluminium Manufacturing Company, a 50% joint venture partner in a successful smelter that produces premium high quality primary aluminium products in Qatar, announced results for the three months period ended 31 March 2020. Net profit came in at QR 10.7 million.

Qatar Aluminium Manufacturing Company

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“Financial performance of QAMCO during first quarter of 2020 has continued to be impacted by external macroeconomic factors beyond the Company’s control, which weighed on the Company’s financial performance since 2019,” the company said.

Revenue stood at QR565 million, down by 14% year-on-year, as the pressure continued on the global aluminium prices and uncertainty building supply surplus on account of decreased global demand. EBITDA stood at QR 166 million for the three months. That was down by 11% year-on-year.

Average selling prices fell by 14% YoY driven by the decline in global market prices for aluminium.

Mr. Abdulrahman Ahmad Al-Shaibi, Chairman of the Board of Directors, QAMCO, said: “Although the macroeconomic environment was challenging since the start of 2020, the Company managed to demonstrate its underlying strength as a key investor in one of the world’s lowest-cost, most-efficient aluminium smelters. During the period, in an adverse market, QAMCO’s JV managed to continue with profits in the face of falling aluminium prices and unprecedented headwinds of COVID-19 pandemic.

aluminium

“In response to limit the spread of COVID-19 pandemic and ensure our operations remained resilient, our joint venture implemented several measures to ensure safety of employees and business continuity. Our sales and marketing partner, is diligently monitoring the market position, as the pandemic evolves, and acting effectively to minimize the risk of disruptions to the supply chain activities. Going forward, adaptation to ever evolving market forces will allow us more flexibility and better position the Company for long-term future growth and maintain its market standing as one of the world’s lowest cost aluminium smelters.”

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EDITED BY : HEENA IQBAL 2MINS READ

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