COVID-19 impact: Qatar Aluminium Manufacturing Company’s revenue down by 9% to QR 1,121 million in H1 2020

Qatar Aluminium Manufacturing Company, a 50% joint venture partner in one of the most cost efficient aluminium smelters globally, based in Qatar, announced a net profit of QR 14.6 million for the six months period ended 30 June 2020.

The company’s revenue amounted to QR 1,121 million, down by 9% YoY, as the global pandemic impacted major industries across the automotive, transport jets and construction sectors.

QAMCO’s average selling prices declined by 15% YoY, and contributed QR 186 million negatively to the net profits. “This was partially offset by an upside in the sales volumes, which contributed QR 71 million to the 1H-20 net profits, as compared to last year.”

QAMCO’s share of joint venture’s EBITDA stood at QR 306 million in H1 2020, down by 10% year on year.

Mr. Abdulrahman Ahmad Al-Shaibi, Chairman of the Board of Directors, QAMCO, said: “Despite the macroeconomic headwinds since the start of 2020, the Company continued to demonstrate its underlying strengths being one of the world’s lowest-cost and most-efficient aluminium smelters. During the period, with an adverse market sentiments, QAMCO’s JV managed to remain profitable with continued declining trends in the global aluminium prices and unprecedented challenges faced amid spread of COVID-19 pandemic.

In response to limit the spread of COVID-19 pandemic, our joint venture continued with the measures implemented to ensure safety of employees and business continuity. As the pandemic evolved, our sales and marketing partner, diligently monitored the market position, and acted effectively to minimize the risk of disruptions to the supply chain. With these measures in place, there were no disruptions noted in the production processes nor to the distribution and marketing activities due to the COVID-19 pandemic, where our teams continued to outperform the market adversities.

Going forward, adaptation will be a key to ever-evolving market dynamics which will bring in increased flexibility and would better position the Company for the long-term and maintain its market standing as one of the world’s lowest cost aluminium smelters. ”