Bahrain: Alba records $46mln net profit in Q3; revenue hits $1.6bln

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Bahrain - Aluminium Bahrain (Alba), one of the world's largest aluminium smelters, has reported a profit of BD17.3 million ($46 million) for Q3, down 64% over last year, mainly driven by poor LME prices (which fell by 8%) and lower premiums. while its revenue hit BD400 million ($1.06 billion) versus BD403.2 million ($1.07 billion) in Q3 2022 - down by 0.8% YoY.

Announcing the results for the three-month period ended September 30, 2023, Alba said the total comprehensive income for Q3 2023 stood at BD20.7 million ($55.2 million) versus total comprehensive income for the third quarter of 2022 of BD58.2 million ($154.8 million) – down by 64% YoY.

The gross profit for Q3 2023 was BD48.6 million ($129.3 million) versus BD79 million ($210.2 million) for the same period in 2022 – down by 38% YoY, it stated.

The company reported basic and diluted earnings per share of fils 12 for Q3 2023 versus basic and diluted earnings per share of fils 34 for the same period in 2022.

With regards to the nine months of 2023, Alba has reported a profit of BD94.6 million ($251.7 million), down by 75% versus a profit of BD376.7 million ($1 billion) for the same period in 2022. The company reported basic and diluted earnings per share of fils 67 for the nine months of 2023 versus basic and diluted earnings per share of fils 266 for the same period in 2022.

On the nine-month period, Alba said its total comprehensive income stood at BD100.5 million ($267.3 million), down by 75.8% YoY, compared to a total comprehensive income of BD416.1 million ($1.1 billion) in the same period of 2022.

Gross profit for the nine months of 2023 was BD196.4 million ($522.3 million) versus BD465 million ($1.23 billion) in the same period of 2022 – down by 57.8% YoY.

Alba generated for the nine months a revenue of BD1.1 billion ($3.1 billion) versus BD1.3 billion ($3,6 billion) in the same period of 2022 - down by 16% YoY.

Total equity as of September 30, 2023 stood at BD1.7 billion ($4.7 billion), down by 2.7%, versus BD1.8 billion ($4.8 billion) as of December 31, 2022.

Alba’s total assets as of September 30, 2023 were BD2.63 billion ($7 billion) versus BD2,6 billion ($6.96 billion) as at 31 December 2022 - up by 0.6%.

Alba said economic growth in major markets remained under pressure in Q3 as tighter monetary policy weigh on household spending and commodities’ consumption.

The top-line and bottom-line were driven by lower LME prices (down by 8% YoY in Q3 2023 and down by 20% YoY for the 9 months of 2023) and lower premiums (down by 39% YoY in Q3 2023 and down by 36% YoY for the 9 months of 2023), it added.

On Middle East, Alba said the demand was up by 7% YoY supported by higher consumption in UAE & KSA.

Despite a dull demand, global primary production was pushed up by higher output in China and Americas.

Europe's slow economic growth and higher inflation led to a contraction in aluminium consumption (down by 3% YoY).

Despite a dull demand, global primary production was pushed up by higher output in China and Americas.

On its key operational highlights for the period, Alba said the production volume stood at 409,445 metric tonnes (MT) in Q3, up by 1% YoY; while 9 months volume rose to 1,213,325 MT, thus registering a 2% growth YoY.

The sales’ volume for Q3 rose to 430,351 MT, thus posting a 17% YoY growth; while 9 months sales soared to 1.18 million MT, up by 7% YoY.

According to Alba, the value added sales surged 68% versus 67% in Q3 2022; while for 9 Months: its sales rose 67%.

A key highlight of the Q3 period was the debut of its new alloy ‘6060.HE’ in Alba’s product portfolio as a member of its AA6060 alloy family dedicated to the company’s extruder customers.