Aluminium Bahrain (Alba) released results for the first quarter of 2023. Results were lower across the board, which the firm chalks up to a lower LME price and premiums.
In the year’s first quarter, Alba reported a profit of US$126.2 million, off by 68 percent on the year from last year’s total of US$390.4 million. Total comprehensive income was down by 71 percent on the year, from US$415 million last year to US$120.7 million this year. Gross profit fell by 55 percent since last year, from US$473.4 million to US$212.4 million.
Sales volume in the quarter peaked at 359,677 metric tons, better by 2 percent on the year. Value added sales remained the same from last year’s first quarter at 64 percent.
Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said in a press release that the results were still promising in light of market conditions.
“Despite lower LME prices and weak investor sentiment, we have managed to voyage the first quarter of 2023 by achieving an exceptional performance on the operational and financial fronts.”
“As we journey amidst the market challenges, we remain committed to execute our strategic priorities – progressing Line 7’s Feasibility Study and accelerating Power Station 5 Block 4 construction – in line with our ESG roadmap,” he concluded.
Alba’s Chief Executive Officer Ali Al Baqali said that remaining on task in lean times is essential.
“In this bearish economic backdrop, we remain focused on what we can really control: Safety, Efficient Operations and Lean Cost Structure while we collectively navigate with our team — employees and contractors’ personnel — the waves to get better at what we do.”
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 2022 Alba’s smelter produced 1,600,111 metric tons of primary aluminium.