09 February 2015

  • Net Income reaches US$ 257 million in 2014 (an increase of US$44 million from 2013)

  • Record breaking-year with production surging to 931,427 metric tonnes in 2014

  • Dividend of US$ 101 million proposed by the Board (of which US$ 45 million were paid as an interim dividend in September 2014)

2014 Industry Highlights

  • Aluminium demand remains healthy with world consumption up by 8% year-on-year (YoY). Asian demand up by 10% YoY supported by a robust growth in China (+13% YoY) on the back of government stimulus and infrastructure investment. North America shows strong demand growth (over 5% YoY) due to higher automotive demand with ramp-up of new Ford F-150 aluminium body. In addition, MENA demand is healthy supported by infrastructure spending while Europe consumption remained stable.

  • World market is in deficit (-12 Kt with China and -984 Kt without)

  • LME inventories at 4.2 million metric tonnes in December

·         2014 LME Cash average was slightly higher at $1,866 per metric tonne (mt) as compared to $1,846 mt in 2013.

2014 Alba Highlights

  • Continued improvement in safety performance with Alba winning the 2014 Gulf Aluminium Council (GAC) Health & Safety Award

  • Alba increased its sales by 1.3% YoY to 931,526 metric tonnes (mt) while production rose by 2.1% YoY to reach 931,427 mt

  • Solid increase in physical premiums (+33% YoY)

  • Value-Added Products accounted for 66% of total shipments

  • Alba was notified that the natural gas price will increase to US$ 2.5 per MMBTU effective April 1, 2015 thereafter escalate at US$ .25 cents per year until it reaches US$ 4.00 per MMBTU in April 2021

 2014 Full-Year Results

Alba's Total Sales for the full-year of 2014 were up by 10% YoY to reach BD 821.7 million (US$ 2.185 billion) versus BD 749.3 million (US$ 1.993 billion) in 2013. As for the fourth quarter of 2014, Total Sales totalled BD 222.2 million (US$ 591 million) versus BD 183.5 (US$ 488 million) in Q4 2013, an increase of 21% YoY on the back of higher LME prices and physical premiums.

The company posted a Net Income for 2014 of BD 96.4 million (US$ 257 million) compared to BD 79.7 million (US$ 212 million) in 2013. Net Income for the fourth quarter of 2014 stood at BD 34.6 million (US$ 92 million) versus BD 13.7 million (US$ 36 million). 

The total dividend proposed for fiscal year 2014 is BD 37.9 million (US$ 101 million) versus 2013 total dividend of BD 50.7 million (US$ 135 million). The Board recommended a final 2014 dividend of BD 21 million (US$ 56 million) in addition to the interim dividend already paid in September 2014 of BD 16.9 million (US$ 45 million).

2015 Alba Priorities:

  • Continuous focus on Safety and Training programs

  • Deliver on Project Titan

  • Leverage strong physical demand conditions

·         Line 6 Project

Aluminium Bahrain B.S.C. (Alba) released its full-year and fourth quarter of 2014 results during a meeting of the company's Board of Directors on Monday, February 09, 2015.

Commenting on the full-year results of 2014, The Chairman of Alba's Board of Directors, Daij Bin Salman Bin Daij Al Khalifa:

"2014 was a year of tremendous accomplishments in safety and production with Alba achieving 931,437 metric tonnes, the highest in Alba's 43 year history. Looking ahead, the company plans to focus on growth and the Line 6 expansion project."

Alba's Chief Executive Officer, Tim Murray added:

"Alba continued to make improvements in Safety performance which had a direct positive impact on the bottom line.  With Alba's dedicated workforce and focus on continuous improvement, I am confident 2015 will be another great year."

Alba's Management will be holding a conference call on Wednesday, February 11, 2015 to discuss Alba's performance for the 2014 Full-Year Results as well as outline the company's priorities for the remainder of 2015.

-Ends- 

About Alba:
Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 931,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.

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%).

For further details, please contact:
Eline Hilal
Investor Relations Manager
Tel:         (973) 1783 5100
Mob:      (973) 39907255
E-mail:   eline.hilal!@alba.com.bh
Website: www.albasmelter.com.bh

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© Press Release 2015