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29 OCTOBER 2018 AL CIRCLE

Spike in alumina prices affect Alba’s Q3 2018 net income

EDITED BY : HEENA IQBAL 2MINS READ

Alba announced its financial results for the third quarter and nine months of 2018. Alba said its top-line and bottom-line for Q3 and nine months of 2018 were primarily driven by higher metal sales’ volume and partially offset by higher alumina prices. 

For the Third quarter of 2018, Alba reported a net income of BD 14.3 million (US$ 38 million), down 44% YoY on higher alumina prices, compared to BD 25.8 million (US$ 68.5 million) in Q3 2017. Total sales/revenues decreased to BD 234.6 million (US$ 623.8 million) versus BD 235.3 million (US$ 625.8 million) in Q3 2017.

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For the nine months of 2018, the company’s net income stood at BD 77.3 million (US$ 205.6 million up 12% YoY, compared to BD 69 million (US$ 183.5 million) in nine months in 2017.Total Sales/Revenues rose 16% YoY to reach BD 699.8 million (US$ 1,861.2 million), compared to BD 605 million (US$ 1,609.1 million) in Q3 2017.

Q3 2018 Alba Highlights:

  • Launch of the Summer Safety Campaign ‘Safety Selfie’.
  • Total Sales and Production volume touched 248,970 metric tonnes (MT) and 251,472 MT respectively.
  • Alba Value-Added Sales averaged 60% of total shipments in Q3 2018.
  • The achieved benefits of Titan – Phase III are US$ 83/MT 

The Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “Despite higher Alumina prices, Alba managed to deliver sound financial performance. As we progress with Line 6 Expansion Project, we look forward for the First Hot Metal by January 01, 2019 and safe start-up of Line 6.

Q3 2018 Industry Highlights:

  • Despite the trade-tensions, the global physical demand remain healthy with world consumption up by 4% Year-over-Year (YoY). MENA demand hit double-digit growth (+10% YoY) driven by major infrastructure spending in Saudi Arabia (+25% YoY). Demand in Asia up by 5% YoY led by Chinese consumption, Europe consumption up by 3% YoY thanks to sound demand across Building & Construction (B&C) and transport sectors while the demand in North America rose by 2% YoY driven by auto production (heavy-duty trucks) & construction sector.
  • Global production grew at slow pace (+2% YoY); Asian supply was up by 3% YoY [Chinese supply rose by 2% YoY] while production in North America fell by 4% YoY due to the late ramp-up of New Madrid smelter. World market is in deficit with China (-333 Kt) & (-445 Kt) without China.

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EDITED BY : HEENA IQBAL 2MINS READ

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