Bahrain: Alba’s Q2 profit increases 129.2% to $182mln

PHOTO

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

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

The total comprehensive income for Q2 2024 stood at BD66.7m ($177.4m) versus total comprehensive income for the second quarter of 2023 of BD32.6m ($86.8m) – up by 104.5pc YoY.

Gross profit for Q2 2024 was BD102m ($271.2m) versus BD67.9m ($180.6m) for the same period in 2023 – up by 50.1pc YoY.

With regards to the revenue from contracts with customers in Q2 2024, Alba generated BD407m ($1,082.3m) versus BD387m ($1,029.4m) in Q2 2023 – up by 5.2pc YoY.

For the first half of 2024, Alba has reported a profit of BD93m ($247.3m), up by 20.2pc YoY versus a profit of BD77.4m ($205.7m) for the same period in 2023.

The company reported basic and diluted earnings per share of 66 fils for H1 2024 versus basic and diluted earnings per share of 55 fils for the same period in 2023.

Alba’s total comprehensive income for H1 2024 was BD94.4m ($251m), up by 35.4pc YoY, compared to a total comprehensive income of BD69.7m ($185.4m) in H1 2023.

Gross profit for the first half of 2024 was BD159.2m ($423.5m) versus BD147.8m ($393m) in H1 2023 – up by 7.7pc YoY.

Alba generated revenue from contracts with customers of BD741.5m ($1,972.1m) in H1 2024 versus BD757m ($2,013.2m) in H1 2023 – a drop by 2pc YoY.

Total equity as of June 30, 2024 stood at BD1,861.2m ($4,950.1m), up by 4pc, versus BD1,789.2m ($4,758.6m) as of end-2023.

Alba’s total assets as of end-June 2024 were BD2,631.1m ($6,997.5m) versus BD2,553.6m ($6,791.4m) as of end-2023 - up by 3pc.

Alba’s top-line and bottom-line were driven by LME prices which increased 11pc YoY in Q2 2024 and 1pc in H1 2024.

However, lower premiums, down 21pc in Q2 and 32pc in H1 compared to the previous year, partially offset these gains.

The board of directors of Alba resolved during the virtual board meeting yesterday to recommend the distribution of interim dividend as at June 30, 2024 to the shareholders whose names are registered on the company’s register on the record date.

The cash interim dividend is 18.59pc of the share nominal value, equivalent to 18.59 fils per share amounting to BD26,320,150 ($70m).

Commenting on the company’s performance for the second quarter of 2024, Alba 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 $70m. 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 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 22m 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.”