Qatar - Qatar Aluminum Manufacturing Company (Qamco), a 50% joint venture partner in Qatalum, has reported a net profit of QR240mn in the first six months (H1) of 2023, with earnings-per-share of QR0.043.

The share of JV’s revenue declined by 25% to QR1.59bn in H1-2023 and its share of Ebitda (earnings before interest, taxes, depreciation and amortisation) from the JV stood at QR498mn, with an Ebitda margin of 31%.

However, the net earnings declined 61%, largely attributed to an overall dip in average realised selling prices and slightly lower sales volume.

Average realised selling price declined 24% year-on-year during H1-2023 to $2,743 per metric tonne amid macroeconomic challenges and impacted QR496mn to the net profit for six-month period ended June 30, 2023 versus the same period of last year.

Production levels rose 2% versus H1-2022. Sales volumes declined by 1% due to relatively lower sales of extrusion ingots versus last year. Decline in sales volumes impacted QR25mn to the net profit for six-month period ended June 30, 2023 versus H1-2022.

Cost of goods sold for the current six-month period fell mainly on account of lower raw material costs coupled with higher closing inventory, as production volumes remained higher than sales volumes versus the same period of last year.

On overall basis, the decline in cost of goods sold contributed QR106mn positively to the net profits for the six-month period ended June 30, 2023 versus same period last year.

Qamco’s financial position continued to remain robust with the liquidity position at the end of June 30, 2023 reaching QR1.8bn in form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).

During the period, the JV generated share of operating cash flows of QR178mn, with a negative share of free cash flows of QR101mn mainly due to partial loan repayment.

 

 

© Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (Syndigate.info).