Qamco’s seven-month net profit stands at QR5.2 million; Company holds low selling prices of aluminium responsible

Qatar Aluminium Manufacturing Company (Qamco) in the financial results declared that its net profit pegged at QR 5.2 million for the seven-month period ended on June 30, 2019. These results primarily represent the share of net profit in Qamco’s joint venture Qatalum.

Qatalum is a successful primary aluminium producer and one of the most efficient smelters in the region. Qamco is a 50 per cent shareholder in Qatalum.

Qamco’s share of EBITDA in Qatalum for the period totalled at QR375.2 million, while earnings per share stood at QR0.001. In the first quarter of the year, Qamco’s earnings per share were at QR 0.02.

Qamco on Thursday pointed that the sluggish selling prices of aluminium directly affected the company’s performance and therefore, its economy.

During the second quarter, Qatalum faced a one-off impairment loss as a result of an overhaul of steam turbines. Shares amounted to QR13 million that led to a corresponding share of power import costs to QR8 million. This also affected the profitability of the company.

Qatalum’s sales volumes, however, increased by 2 per cent during January-June, compared to the same period last year.

Qatalum continued to gain from its strategic partner Norsk Hydro, and maintained its position to market and sold all of its produced products to compete with international suppliers for the period.

Qamco said it is working closely with Qatalum to ensure some valuable improvements in areas like cost and supply chain, revenue, efficiency, and capital allocation.

“These efforts ensure that Qatalum will continue to maintain its position as one of the world’s low cost aluminium smelters,” Qamco added.