Aluminium Bahrain B.S.C. released financial results for the second quarter and first half of 2019 on Sunday. Alba turned in a weaker than hoped performance in both periods due to tepid prices at the LME.
The second quarter saw Alba post a total comprehensive loss of BD3.3 million (US$8.8 million), a reversal on the year from last year’s second-quarter total comprehensive income of BD29.1 million (US$77.4 million). Gross profits fell 55 percent on the year, from BD34.3 million (US$ 91.4 million) in last year’s second quarter to BD15.4 million (US$40.9 million) in the just-ended quarter. Total sales and revenue in the quarter were essentially level on the year at BD245.0 million (US$651.8 million), 0.4 percent above last year’s second-quarter number of BD243.9 million (US$648.9 million).
Alba cited several achievements in the year’s second half, noting that production rose by 21 percent on the year to 305,727 metric tons. Sales volumes rose by 25 percent to 311,928 metric tons, with value-added products accounting for 52 percent of those sales.
For the first half Alba posted a total comprehensive loss of BD19.1 million (US$50.9 million), reversing last year’s total comprehensive profit of BD62.9 million (US$167.4 million). Gross profit for the half fell by 78 percent, from BD74.3 million (US$ 197.7 million) to BD16.2 million (US$43.2 million). Total sales of BD448.6 million (US$1,193 million) were off by 4 percent on the year from last year’s first-half total of BD465.2 million (US$1,237.2 million).
“The economic uncertainty and lower LME prices have taken its toll on the aluminium industry but in Alba, we have emerged stronger with progressing the ramp-up of Line 6,” explained Alba’s Chief Executive Officer Tim Murray. “I also thank all Alba employees and contractors for their unwavering support and focus on Safety at all times.”
“Alba will soon be transformed into the world’s largest aluminium smelter with the smooth integration of Potline 6 into its existing operations in the upcoming weeks,” explained the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa.
“Alongside this transformation, we will also see the change of reign in the top management from Tim Murray to Ali Al Baqali who will lead Alba as the Acting CEO, effective 1st August, as we continue to seek further efficiency and growth.”
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.