|07 July, 2019

Alba wraps sales and production with double-digit volume increase in Q2 2019

Alba closed this quarter with Value-Added (VA) Sales averaging 52% of total shipments versus 60% for the same period in 2018.

Tim Murray, Chief Executive Officer

Tim Murray, Chief Executive Officer

Aluminium Bahrain B.S.C. (Alba), on course to be transformed into the largest smelter in the world with the full ramp-up of Line 6 on 31 July 2019, stretches its overall sales’ volume and throughput, in double-digits, for the second quarter of 2019 despite trade-tensions and the downward pressure on LME prices.

For the second quarter of 2019, sales’ volume went beyond 249,595 metric tonnes (mt) in Q2 2018 to top 311,928 mt, an increase of 25% Year-over-Year while production jumped to 305,727 mt, up by 21% YoY versus 252,081 mt in Q2 2018.  Alba closed this quarter with Value-Added (VA) Sales averaging 52% of total shipments versus 60% for the same period in 2018.

For the first half of 2019, production reached 578,434 mt versus 511,480 mt in H1 2018, up by 13% YoY, while sales’ volume increased by 67,810 mt to top 569,042 mt year-to-date (up by 14% Y0Y).

Commenting on Alba Sales’ volume and Production for Q2 2019, Alba’s Chief Executive Officer, Tim Murray said:

 “Driven by the solid progress on the Line 6 ramp-up, Alba closed the second quarter with double-digit volume increase in both Sales and Production.

We are targeting Line 6 complete ramp-up by 31 July 2019 which will position Alba for a strong 2nd half-finish despite the tough aluminium market conditions.” 

Aluminium Bahrain B.S.C. (Alba) will release its Second Quarter 2019 Financial Results to the public on 28 July 2019 as well as upload the IR presentation on its Investor Relations section at www.albasmelter.com

-Ends-

About Alba

Aluminium Bahrain B.S.C. (Alba), one of the 1 million-metric tonnes smelters in the world, is one of the largest aluminium producers in the world. Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company’s shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).

Starting-out as a 120,000 metric tonne per annum (mtpa) smelter in 1971, Alba’s production for 2018 stood at plus-1 million metric tonnes. Alba’s product portfolio comprises high-grade aluminium and Value-Added Products that include standard and T-ingots, extrusion billets, rolling slabs, properzi ingots and molten aluminium. The Company is well-known for its strong Safety culture, employee development and work culture for value-creation and sustainable operations.

About Line 6 Expansion Project

The pride of the Kingdom of Bahrain, Alba’s Line 6 Expansion Project will make Alba the world’s largest aluminium smelter.

Alba’s Line 6 Expansion Project is one of the biggest brownfield developments in the Middle East Region. With a CAPEX of approximately US$ 3 billion, the Line 6 Expansion Project involves the construction of a sixth pot line using EGA’s proprietary DX+ Ultra Technology, a 1,792 MW Power Station (Power Station 5) utilising the world’s first H-class General Electric (GE) 9HA Gas Turbine (GT) and other industrial services.

Alba Potline 6 was commissioned on 13 December 2018, ahead of schedule, with the delivery of the First Hot Metal. Line 6 Expansion Project progress has been fast-paced since then with successfully starting 212 pots which is equivalent to 50% of Potline 6 total capacity. Alba is now looking at the safe commissioning of the remaining 212 pots and to move closer to full production by Q3 2019.

Bechtel is the EPCM contractor for the Line 6 Expansion Project smelter. For Power Station 5 (PS 5), GE and GAMA Consortium was awarded the EPC contract, while Siemens is the Power Distribution System contractor.  J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project. In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

Alba successfully closed a US$ 1.5 Billion syndicated term-loan facility comprising two tranches Conventional Facility & and Islamic Facility in October 2016. The 1st tranche of the Export Credit Agencies (ECA) Financing of c. US$ 700 million for Euler Hermes and SERV-covered facilities was closed in July 2017 while the first part of 2nd ECA-tranche of EUR 204.5 million for Bpifrance Assurance Export (“BpiAE”) and Euler Hermes-covered facilities was secured in April 2018.  Alba successfully closed the final instalment of the 2nd ECA-tranche - c.US$136 million and c. EUR90 million from ECA supported-facilities - by end of 2018.

As of 31 May 2019, Line 6 Smelter’s Overall Progress advanced by 93.7% (Engineering progressed by 99.9% while Contracts and Procurement advanced by 98.9%); Power Station 5 & Power Distribution System Overall Progress exceeded 94% and by over 99% respectively.

Line 6 Expansion Project will be transformational for the Kingdom of Bahrain as it will significantly boost employment opportunities for Bahrainis at both Alba and the local downstream market. It will also present many co-investment opportunities through local and foreign aluminium investments in the Kingdom of Bahrain.

Alba External Grievance Mechanism

Alba, in line with the Performance Standards of the International Finance Corporation (IFC), a World Bank affiliated lending organisation, has launched its External Grievance Mechanism to receive and facilitate the resolution of the affected communities’ concerns and grievances about Alba’s Environment and Social (E&S) performance.

External grievances about Alba’s E&S performance can be logged via the Alba Integrity Line - an independently operated confidential reporting hotline in multiple languages - via a toll-free phone system or via the intranet 24 hours a day, every day.

For further details, please contact:
Eline Hilal
Senior Manager, Investor Relations & Corporate Secretary
Investor Relations Department
Tel:          (973) 1783 5100
E-mail:    eline.hilal@alba.com.bh
Website: www.albasmelter.com 

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