Qamco reports net profit of QR80m for thirteen-month period ended on December 31, 2019

Qatar Aluminium Manufacturing Company (Qamco), a 50 per cent shareholder in Qatar Aluminium Limited, has announced the results of its thirteen-month financial period ended on December 31, 2019, reporting a net profit of QR 80 million. The company's EBITDA stood at QR 704 million, revenue amounted to QR 2.7 billion, while earnings per share (EPS) came in at QR 0.014.

According to Qamco, its financial performance in 2019 was largely driven by external macroeconomic factors like trade conflicts, overcapacities, and slow global GDP growth that directly affected the aluminium prices.

The company’s average selling prices fell by 12 per cent during 2019, primarily due to the decline in global aluminium prices. This led to a decrease in net earnings by about QR 365 million when compared with the last pro-forma period.

Nonetheless, Qamco’s profitability remained robust. The sales volumes were up by 2 per cent and also the overall cost of goods sold remained stable.

Qamco’s total assets, as of December 31, 2019, stood at QR 5.7 billion, with bank balances QR 103 million.

Abdulrahman Ahmad Al Shaibi, Chairman of the Board of Directors, Qamco, said: “Although the macroeconomic environment was challenging in 2019, the Company in its first full year of operation demonstrated its underlying strength as a key investor in one of the world’s lowest-cost, most-efficient aluminium smelters.”

Throughout the year, in an adverse market, Qamco’s JV managed to continue with profits in the face of falling aluminium prices. This was accomplished by rolling out a number of cost-conservation measures, while ensuring that the Company remained well-placed to maximize value for shareholders,” he added.