Alba Reports 53 Percent Bump In Gross Profit For Q3

Alba Reports 53 Percent Bump In Gross Profit For Q3

Aluminium Bahrain B.S.C. reported financial results for the third quarter and opening three months of 2019 yesterday. A weak global market for aluminium notwithstanding, the firm reported increases in both sales and profit for the just-ended quarter.

In the third quarter, Alba generated a Profit and Total Comprehensive Income of BD10.7 million (US$28.5 million), down by 25 percent on the year from last year’s third-quarter total of BD14.3 million (US$38.1 million). Gross profit for the quarter rose by 53 percent, to BD29.2 million (US$77.6 million) from BD19.0 million (US$50.6 million) last year. Total Sales and Revenues in the quarter came to BD287.1million (US$763.6 million), up by 22 percent on the year from last year’s third-quarter total of BD234.5 million (US$623.8 million).

Alba showed a Loss and Total Comprehensive Loss of BD8.4 million (US$22.4 million) in the first nine months of 2019, a drop of 111 percent from last year’s Profit and Total Comprehensive Income of BD77.2 million (US$205.6 million). The opening nine months saw the firm post a Gross Profit of BD45.4 million (US$120.9 million), off by 51 percent from last year’s first nine months’ Gross Profit of BD93.3 million (US$248.3 million). Total Sales/Revenues rose by 5 percent to BD735.7 million (US$1,956.6 million), up from last year’s number of BD699.7 million (US$1,861.1 million).

Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said in a press release that the firm did well to remain in the black despite a challenging global market.

“Despite downbeat economic and market sentiments, we were able to lock-in positive profitability in Q3 thanks to the progressive ramp-up of Line 6. We look positively into the future as we stand at the threshold of becoming the world’s largest aluminium smelter with Line 6 fully going on-stream soon.”

“2019, no doubt, has been a difficult year for the aluminium market due to depressed LME prices and overall industry outlook,” noted Alba’s Acting Chief Executive Officer Ali Al Baqali. “However, we aim to finish 2019 strong by achieving for the first-time a production of 1.35 million metric tonnes and exceeding 15 million working-hours without LTI – another first in Alba’s history.”

Alba is one of the largest industrial companies in the Middle East and is one of the top 10 largest aluminium producers in the world. Originally incorporated in 1968, the company is based in Bahrain and 84% of its total workforce are Bahraini nationals. It began operations in 1971 with a 120,000 metric ton annual capacity. Modernization bumped the output up to 450,000 metric tons in 1992. In the spring of 2005, Alba opened Line 5, raising output by 860,000 metric tons per year. In 2018 Alba’s smelter produced 1,011,101 metric tons of primary aluminium.