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Alba registers record Q1 net profit; revenue up 10pc

May 4, 2021
real estate

Aluminium Bahrain (Alba), the world’s largest aluminium smelter ex-China, has reported a net profit of BD52.2 million ($138.8 million) for the first quarter compared to BD5.8 million ($15.3 million) for the same period in 2020, thus registering a 807 per cent year-over-year (YoY) growth.

Announcing the results for the three-month period ending March 31, Alba said the total comprehensive income for Q1 stood at BD58.4 million ($155.4 million) versus total comprehensive loss for the first quarter of 2020 of BD1.6 million ($4.3 million) - rising by 3,539% YoY.

The gross profit for Q1 stood at BD80.5 million ($214 million) versus BD33.5 million ($89.2 million) for the same period in 2020 – up by 140% YoY.

With regards to the revenue, Alba generated BD302.7 million ($805.1 million) versus BD275.9 million ($733.8 million) in Q1 2020 - up by 10% YoY.

Total equity as of March 31 stood at BD1.14 billion ($3.02 billion), up 5 per cent, versus BD1.08 billion ($2.87 billion) over last year.

Alba’s total assets were seen at BD2.43 billion ($6.47. billion) versus BD2.34 billion ($6.25 billion) as of December 31, 2020 - up by 3%. Also it had reported basic and diluted earnings per share of 37 fils for Q1 versus 4 fils for the same period in 2020.

Alba’s top-line were driven in the first quarter of 2021 by higher LME prices (+24% YoY) and partially offset by lower Sales’ volume (a drop of 6% YoY) while the bottom-line was driven by higher top-line and partially impacted by higher depreciation as well as higher General and Selling Expenses.

Commenting on the Q1 performance, Chairman Shaikh Daij Bin Salman Bin Daij Al Khalifa said: 'The best way to foresee a sustainable future is to plan it. Alba is where it is today thanks to the guidance and wise directives of Bahrain’s leadership as well as their farsighted vision and support towards the Line 6 Expansion Project - which has become a reality - and for trusting us to achieve this landmark project.'

'I also take the opportunity to thank HRH the Crown Prince and Prime Minister for his thought-decision to freeze natural gas price at $3.75/MMBTU for a year. HRH directive reinforces his unlimited support to Alba’s growth and development which along with stronger metal demand, higher LME price and continuous improvements in production efficiencies will create greater value for Alba’s shareholders,' he stated.

'In terms of business performance, we had a strong come-back and we delivered a solid quarter on many fronts,' he noted.

Among its key achievements, the aluminium giant said it included a record-high Ebitda margin in the company’s 50-years of commercial operations – 29.8% and also netting the highest-ever recorded profit in a quarter of BD52.2 million ($139 million), up by 807% YoY.

Alba said its operations continued to run at full run-rate. The higher productivity was made possible thanks to Line 6, it added.

The VAP sales’ volume was the highest on record in Alba’s history standing at 218,767 MT.

CEO Ali Al Baqali said: “If we do what we’ve always done, we will end-up with what we’ve always gotten. We had to think differently, thanks to this pandemic, to advance our performance as a company on the operational and financial profitability fronts.'

'It’s thanks to our agile workforce that we have been able to bounce-back and start 2021 strong. We also take pride in our Safety achievement as we topped collectively more than 10 million safe-working hours without LTI,' he noted.

'I am optimistic about our business and confident that our performance will exceed our ambitious objectives – Safety Excellence, higher productivity, lean operations as we move forward in 2021, he added.