Aluminium Bahrain (Alba), the world’s largest aluminium smelter outside China, has reported a profit of BD29.9 million ($79.5m) for the second quarter of 2023, down by 83.6 per cent year-over-year (YoY), versus a profit of BD181.9m ($483.9m) for the same period in 2022.

The company reported basic and diluted earnings per share of 21 fils for Q2 2023 versus basic and diluted earnings per share of 128 fils in Q2 2022. The total comprehensive income for Q2 2023 stood at BD34.4m ($91.5m) versus total comprehensive income for the second quarter of 2022 of BD201.9m ($536.9m) – down by 83pc YoY.

Gross profit for Q2 2023 was 67.9m ($180.6m) versus BD208m ($553.2m) for the same period in 2022 – down by 67pc YoY. With regards to the revenue from contracts with customers in Q2 2023, Alba generated BD387m ($1,029.3m) versus BD520.4m ($1,384m) in Q2 2022 - down by 25.6pc YoY.

For the first half of 2023, Alba has reported a profit of BD77.4m ($205.7m), down by 76.5pc YoY versus a profit of BD328.7m ($874.3m) for the same period in 2022. The company reported basic and diluted earnings per share of 55 fils for H1 2023 versus basic and diluted earnings per share of 232 fils for the same period in 2022.

Alba’s total comprehensive income for H1 2023 was BD79.8m ($212.2m), down by 78pc YoY, compared to a total comprehensive income of BD357.9m ($951.8m) in H1 2022. Gross profit for the first half of 2023 was BD147.8m ($393m) versus BD386m ($1,026.7m) in H1 2022 – down by 62pc YoY. Alba generated in H1 2023 revenue from contracts with customers of BD757m ($2,013.2m) versus BD975.3m ($2,593.9m) in H1 2022 – down by 22.4pc YoY.

Total equity as at June 30, 2023 stood at BD1,771.2m ($4,710.6m), down by 3pc, versus BD1,822.5m ($4,847m) as at December 31, 2022. Alba’s total assets as of June 30, 2023 were BD2,669.2m ($7,099m) versus BD2,617.2m ($6,961m) as at December 31, 2022 – up by 2pc.

Alba’s board of directors have proposed to pay an interim cash dividend of Fils 13.28 per share (excluding the treasury shares) amounting to BD18,801,617 to Alba’s shareholders.

Commenting on the results, Alba chairman Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “We have maintained our position amidst mixed macroeconomic backdrop and delivered a strong performance in the second quarter over many operational metrics:

- Our production reached 405,628 metric tonnes (MT), an increase of 9,085MT versus Q2 2022.

- Our sales volume topped 392,258MT, up by 3,816MT versus Q2 2022.

- Value added products touched 70pc of total sales (70pc in Q2 2022) underlining a solid demand for these products.

“This performance would have allowed us to beat Q2 2022 financial performance if LME prices and premia were to remain the same (LME prices and premia combined have dropped by 61pc YoY).

“Our financial resilience has allowed us to return capital to our shareholders with 13.28 fils per share as interim cash dividend amounting to BD18,801,617.

“As we look forward, we remain optimistic to stay on course as we progress with Line 7’s feasibility study.”

Adding further, chief executive Ali Al Baqali said: “Through our ongoing cost discipline and operational improvements, we have performed well despite the bearish market sentiment and delivered a good performance when compared to our peers.

“In a changing macroeconomic landscape, we remain focused to deliver on what we really have control on: safety, productivity and cost.”

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