Despite Rising Alumina Costs, Alba Turns In Strong Third Quarter
29 October 2018 by Staff
Aluminium Bahrain B.S.C. (Alba) reported financial results for the third quarter of 2018 yesterday. Though sales volumes in the quarter rose, a rise in alumina prices tempered bottom-line gains.
In the just-ended quarter, Alba recorded a net income of BD14.3 million (US$38 million), off by 44 percent on the year from BD25.8 million (US$68.5 million). Total sales for the quarter equaled BD234.6 million (US$623.8 million), essentially level on the year from last year’s total of BD235.3 million (US$625.79 million).
The third quarter saw a sales volume of 248,970 metric tons, with a quarterly production of 251,472 metric tons. Value-added sales accounted for 60 percent of third quarter shipments.
Over the first nine months of 2018, Alba’s net income rose 12 percent on the year to BD77.3 million (US$205.6 million). Sales for the period came to BD699.8 million (US$1,861.2 million), a 16-percent rise over last year.
Commenting on Alba’s financial performance for the nine months of 2018, Board chairman Shaikh Daij Bin Salman Bin Daij Al Khalifa acknowledged Alba’s strong performance in the quarter and looked ahead to developments in the year’s final months.
“Despite higher alumina prices, Alba managed to deliver sound financial performance. As we progress with Line 6 Expansion Project, we look forward for the first hot metal by January 1, 2019 and safe start-up of Line 6.”
Tim Murray, Alba’s CEO, noted that his firm held the line in the quarter despite higher alumina prices.
“The unprecedented spike in alumina prices has a significant impact on the aluminium industry and Alba was no exception. Despite the negative impact of alumina prices, Alba was able to deliver solid financial results through our Project Titan Cost Improvement Program. I would also thank our employees and contractors for taking extreme ownership on Safety during the difficult summer months.”
Aluminium Bahrain B.S.C., or simply 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 2016 Alba’s smelter produced 971,420 metric tons of primary aluminium.