Aluminium Bahrain profit Q2 up 129% to $182mln

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Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters, has reported a profit of BD68.5 million ($182.2 million) for the second quarter of 2024, up by 129.2% year-over-year (YoY), versus a profit of BD29.9 million ($79.5 million) for the same period in 2023.

The company reported basic and diluted earnings per share of fils 48 for Q2 2024 versus basic and diluted earnings per share of fils 21 in Q2 2023.

The Total Comprehensive Income for Q2 2024 stood at BD66.7 million ($177.4 million) versus BD32.6 million for Q2 2023 – up by 104.5% YoY. Gross Profit for Q2 2024 was BD102 million versus BD67.9 million for the same period in 2023 – up by 50.1% YoY.

With regard to the revenue from contracts with customers in Q2 2024, Alba generated BD407 million ($1,082.3 million) versus BD387 million ($1,029.4 million) in Q2 2023 - up by 5.2% YoY.

For the first half of 2024, Alba reported a profit of BD93 million ($247.3 million), up by 20.2% YoY versus a profit of BD77.4 million ($205.7 million) for the same period in 2023. The company reported basic and diluted earnings per share of fils 66 for H1 2024 versus 55 fils for the same period in 2023.

Alba’s Total Comprehensive Income for H1 2024 was BD94.4 million up by 35.4% YoY, compared to BD69.7 million in H1 2023. Gross Profit for the first half of 2024 was BD159.2 million versus BD147.8 million in H1 2023 – up by 7.7% YoY. Alba generated in H1 2024 revenue from contracts with customers of BD741.5 million versus BD757 million in H1 2023 – a drop by 2% YoY.

Total equity as of 30 June 2024 stood at BD1,861.2 million ($4,950.1 million), up by 4%, versus BD1,789.2 million ($4,758.6 million) as of 31 December 2023. Alba’s total assets as of 30 June 2024 were BD2,631.1 million ($6,997.5 million) versus BD2,553.6 million ($6,791.4 million) as of 31 December 2023 - up by 3%.

Alba’s top-line and bottom-line were driven by LME prices which increased 11% YoY in Q2 2024 and 1% in H1 2024. However, lower premiums, down 21% in Q2 and 32% in H1 compared to the previous year, partially offset these gains.

Alba Board of Directors resolved during the virtual board meeting on August 13 to recommend the distribution of interim dividend of 18.59% of the share nominal value, equivalent to 18.59 fils per share amounting to BD26,320,150 ($70 million).

LME price averaged $2,519/t in Q2 2024, up by 11% YoY. LME inventories jumped 88% YoY reaching about 1 million tonnes, fuelled by growing stockpiles of Russian metal in LME warehouses.

Alba’s Operational Highlights

* Sales volume topped 397,538 metric tonnes (MT), up by 1% YoY while Production dipped slightly by 0.5% YoY to reach 403,747 MT.

* Value added sales accounted for 73% of the total sales’ shipments [VAP: 288,312 MT in Q2’24 versus 272,944 MT in Q2’23].

* The company achieved savings for the e-Al Hassalah (the Company’s improvement programme) at $35 million against 2024 Target of $60 million.

* Alba signed an agreement with SAP, a market leader in enterprise application software, to upgrade its enterprise resource planning solution (ERP) to SAP’s latest software – S/4HANA Cloud.

* Alba CEO takes helm of International Aluminium Institute as its Chairman.

Alba’s Board of Directors Chairman Khalid Al Rumaihi stated: “Building on our Q1 performance and despite navigating a challenging market landscape marked by depressed premiums, we are pleased to report another quarter of solid results thanks to our dedication to operational excellence. This performance has enabled us to return value to shareholders through an interim cash dividend of $70 million.

"We are confident that if premiums had held steady at Q2 2023 levels, our performance would have been even more robust. We remain optimistic about our prospects for the remainder of 2024.”

Alba’s Chief Executive Officer Ali Al Baqali added: “The aluminium industry continues to face economic headwinds. However, focusing on the aspects within our control has enabled us to navigate these challenges while positioning ourselves for sustained growth when market conditions improve.

"Our recent achievement of 22 million safe working hours without a Lost Time Injury is a testament to our team’s dedication to Safety, a core value at Alba. This Safety milestone is directly linked to our overall operational performance and contributes significantly to our success.”