Aluminium Bahrain B.S.C. (Alba) released financial and production results for the year’s second quarter and first half on Sunday. The firm posted increases in both its bottom line and its production totals in both periods.
For the year’s first half Alba reported a loss of US$28.3 million, better on the year than last year’s first-half loss of US$50.9 million. The firm’s total comprehensive loss came to US$52.7 million, better by 4 percent than last year’s first-half loss of US$50.9 million.
Revenue from customers with contracts in the second quarter was US$649 million, falling slightly on the year from last year’s total of US$651.8 million. For the half the revenue from contracts came to US$1,382.9 million, good for a 16-percent increase on the year.
Sales volumes in the second quarter totaled 390,750 metric tons, an increase of 25 percent on the year, as production in the quarter rose by just a percent less on the year to 378,558 metric tons.
Overall, the firm credits a rise in overall metal sales for a better result in the just-ended quarter, which itself was a product of the ramp-up of the new Line 6. However, the sales rise was blunted by a 17-percent drop in prices at the London Metal Exchange, while the company’s overall bottom line suffered thanks to an increase in depreciation and financial charges.
Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa explained the company’s mindset going into the remainder of the year.
“As COVID-19 unfolds, we continue to focus on adapting to the new life norm and keeping our people safe as we navigate together through this crisis. Despite the challenging market conditions, we are unlocking our strength as we aim to close 2020 by meeting our Production Target of 1,540,000 metric tonnes.”
Alba’s Chief Executive Officer, Ali Al Baqali explained how his firm has weathered the coronavirus storm thus far.
“Today, the world is going through radical transformation and the Aluminium industry is not an exception. Despite the odds, we have been able to maintain a stable performance by delivering on our commitments. In the face of this crisis, we choose to get better by capitalising on our Safety culture and operational resilience which has led us to achieve more than 24 million safe working-hours without LTI as of to-date.”
Alba is one of the largest industrial companies in the Middle East and is the world’s biggest aluminium smelter outside the People’s Republic of China. 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 2019 Alba’s smelter produced 1,365,005 metric tons of primary aluminium.