Aluminium Bahrain (Alba), one of the largest aluminium producers in the world, has registered a net loss of BD15.8 million ($42 million) for the first quarter of 2019 compared to a net profit of BD33.9 million ($90 million) for the same period last year, down 147% year-on-year (YoY).
The company posted a gross profit of BD0.850 million ($2.3 million) versus a gross profit of BD40 million ($106.3 million) for the first quarter of 2018, down 98% YoY.
Announcing the first quarter results, the global aluminium giant said its top-line and bottom-line were primarily impacted by lower LME prices, which fell 14% Y-o-Y ($1,859/t in Q1 2019 versus $2,159/t in Q1 2018) and historically higher Alumina prices respectively [21% of LME price in Q1 2019 versus 18% of LME price in Q1 2018].
With regards to total sales/revenues, Alba generated BD203.5 million ($541.3 million) in Q1 2019 versus BD 221.3 million ($588.5 million) in Q1 2018, thus registering a 8% decline YoY.
In Q1 2019, the company reported a loss per share of fils 11 versus Earning per Share of fils 24 in Q1 2018.
However despite the bearish market sentiment and lower LME prices, Alba's sales volume rose by 2% YoY (257,113 mt) and also the production which surged 5% YoY (272,707 mt)
Alba’s Total Assets as of March 31, 2019 stood at BD2.26 billion ($6.01 billion) versus BD2.21 billion ($5.87 billion) as of 31 December 2018, up by 2% YoY.
Total shareholders’ equity fop the period stood at BD1.06 billion ($2.81 billion), down by 1% YoY, versus BD1.07 billion ($2.85 billion) as of December 31, 2018.
The key highlights of Alba first quarter results are:
•Continuous improvement in Plant Safety with the launch of ‘Safety Gateway’ Campaign
•The achieved benefits of Titan – Phase IV are $9 million
• Sales volume up by 2% YoY (257,113 mt) and production up by 5% YoY (272,707 mt)
• Alba Value-Added Sales averaged 52% of total shipments in Q1
• Line 6 Expansion Project Milestones:
•Line 6 Smelter: 50% of Line 6 capacity in full operation (212 pots out of 424 pots) by 18 April 2019
•Line 6 Smelter’s Overall Progress advanced by > 88%
•Power Expansion Project [PS5 > 89% & PDS > 97%]
The top priorities for this year include continued focus on Safety ‘Launch of Safety Gateway Campaign’;
delivery of Project Titan - Phase IV [$40 million by end of 2019] and focus on value-added sales besides development of upstream opportunities on alumina and safe ramp up of Line 6 in early Q3.
Addressing the gathering, Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: "The board of directors had approved the executive management changes as part of its ongoing succession plan: Under this Tim Murray, the current Alba CEO, will be stepping down on July 31 to relocate to the US and Ali Al Baqali, the current Deputy CEO will take over as acting CEO effective August 1.
As part of this transition, Murray will continue with the company as an advisor to the Alba’s board chairman.
Shaikh Daij lauded Murray for his many years of service in Alba. "Over the past 7 years as Alba’s CEO, he has transformed the company’s safety culture. Murray also played an instrumental role in the success of Line 6 Expansion Project which started ahead of schedule in December 2018. We wish him all the best as he returns to his family."
Welcoming Al Baqali, Shaikh Daij said: "He brings many years of leadership from within the company and I look forward to a smooth transition."
On the results, Murray said: "Despite the bearish market sentiment and lower LME prices, Alba continues to outperform its industry peers."
"We are also targeting to complete the ramp-up of Line 6 in the third quarter of 2019 which will provide a significant boost to our bottom-line," he added.-TradeArabia News Service
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