Despite Line 5 Damage, Alba Turns In Strong Second Quarter and First Half Numbers
25 July 2017 by Staff
Boosted in part by a rebound in aluminium prices, Aluminium Bahrain B.S.C. (Alba) posted better financial numbers for the just-ended quarter and half.
Alba turned in total sales of US$476.9 million in the second quarter, up year-on-year from last year’s Q2 total of 441 million. Net income for the quarter came to US$47.1 million, up 8 percent from last year’s second-quarter total of US$43.4 million.
The firm chalks up second-quarter numbers to a year-on-year increase in global consumption of 6 percent in the quarter as well as improvements in the LME price for the commodity, pointing out that the cash average rose year-on-year by US$340.
First-half sales came to US$983.3 million, a 15-percent improvement year-on-year from 2016’s first-half sales total of US$856.8 million. Net income catapulted by 111 percent year-on-year in the first half, from US$54.5 million last year to US$115.2 million this year.
Management credits a resumption of Reduction Line 5 as contributing to increased first-half numbers. Although sales and production volumes were off by 3.9% and 4.5% respectively, Alba points to an increase in value-added sales of 4 percent in the half as contributing to a stronger bottom line in the period. In addition, savings of US$61 per metric ton under the firm’s Project Titan helped boost numbers for the half as well.
“Alba improved its bottom-line despite the impact of the power outage,” opined Alba’s Chairman Daij bin Salman bin Daij Al Khalifa. “I would like to thank our employees and contractors for their continuous efforts in safely restoring Line 5 pots to normal operations.”
Alba’s CEO Tim Murray lauded the company’s resilience during a major unplanned shut-down and the resulting damage it inflicted.
“We delivered exceptional results taking into account the strain that Line 5 recovery put on our operations. I would like to thank all the employees and contractors for their resilience on setting a new industry benchmark on recovery.”
The firm indicated that fully recovering from the Line 5 shutdown and continuing progress on the building of Line 6 are among its priorities for the latter half of the year.