Qamco reports a nine-fold leap in net profit for 2021

The Doha based highly profitable producer of aluminium, Qatar Aluminium Manufacturing Company (Qamco) has booked an almost nine-fold year-on-year leap in net profit to QR835 million in 2021, rendering into earnings-per-share (EPS) of QR0.15.

Qamco board has recommended a total annual dividend distribution of QR446 million for the proposed year, representing a payout ratio of 53% of the current year’s net earnings. A dividend of QR0.08 per share representing 8% of par value resulting in a dividend yield of 4.4% on the closing share price as of 31^st December 2021.

Abdulrahman Ahmad al-Shaibi, the Chairman of Qamco, said: “The main highlight of 2021 was a sequential macroeconomic recovery leading to strong price trajectories for primary aluminium, operational excellence along with good business management in the continuing Covid-19 situation, which resulted in an improved set of financial results since Qamco’s incorporation.”

However, during the review period, the share of the revenue from the joint venture grew 42% to QR3.12 billion.

Qamco’s enhanced financial results, when compared to the existing year, was largely accredited to overall growth in average realised selling prices, which escalated by 42% during 2021 versus last year, and contributed QR932 million positively.

The production activity of the Qatari aluminium producer remained steady with volumes validating a marginal rise of 1% during the year, whereas, the sales volumes saw a minimal dip of 0.4%, exhibiting the timing of shipment to several destinations. Qatar Aluminium Manufacturing Company’s joint venture remained successful in comprehending higher production and sales of VAP in correspondence to the previous year.

In 2021, the cost of goods sold was higher compared to the existing year, primarily on account of higher raw material costs offset by favourable inventory movements and cost optimisation.

The finance cost for the aforesaid year spotted a downfall of 32% yearly, on account of the plunge in interest rates and absence of an unamortised portion of financing cost being written-off last year. The drop in finance cost contributed QR33 million positively to the aluminium product manufacturer’s net earnings.

At the end of December 2021, Qamco’s financial position pursued to remain enterprising with cash and bank balances of QR1.5 billion, while it generated a share of operating cash flows of QR917 million, with a share of QR693 million free cash flow.