Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters, has reported a revenue of BD1,840.9 million ($4,896.1 million) for 2022, up 16% YoY, compared to BD1,584.8 million ($4,215 million) for 2021.
However, the full year profit showed a 8 per cent decline at BD416.2 million ($1,106.8 million) versus BD451.9 million ($1,201.8 million) in 2021.
The company showed a profit of BD39.4 million ($104.9 million) for the fourth quarter of 2022, down by 78% year-over-year (YoY) versus a profit of BD181.2 million ($481.8 million) for the same period in 2021, a statement said.
The company reported basic and diluted earnings per share of Fils 28 for Q4 2022 versus Fils 128 for Q4 2021.
The total comprehensive income for Q4 2022 stood at BD36.6 million ($97.3 million) versus a total comprehensive income for Q4 of 2021 of BD183 million ($486.8 million) – down by 80% YoY. Gross profit for the fourth quarter of 2022 was BD80.6 million ($214.3 million) versus BD215.5 million ($573.2 million) in Q4 2021 – a drop of 63% YoY.
Alba achieved a revenue of BD462.4 million ($1,229.8 million) in Q4 2022 versus BD523.3 million ($1,391.7 million) for the same period in 2021 – a drop of 12% YoY.
The company reported basic and diluted earnings per share of fils 294 for full year 2022 versus fils 319 in 2021. Alba’s total comprehensive income for the full year 2022 was BD452.7 million ($1,204 million), a drop of 1% YoY, compared to BD458.5 million for 2021. The Gross Profit was BD545.6 million (US$1,451.1 million) versus BD577 million ($1,534.7 million) in 2021 – a drop of 5% YoY.
Total equity up 21%
Total equity as of December 31, 2022 stood at BD1,822.5 million ($4,847 million), up by 21% YoY, versus BD1,503 million ($3,997.4 million) as of December 31, 2021. Alba’s total assets as of December 31, 2022 were BD2,617.2 million ($6,961 million) versus BD2,624.6 million ($6,980.3 million) as of December 31, 2021 – a drop of 0.3%.
Alba’s Board of Directors have proposed to pay a final dividend of Fils 85.7 per share (excluding the treasury shares) amounting to BD121.3 million subject to the approvals of the company’s shareholders at the Annual General Meeting which will be held on February 26, the company said.
Industry Highlights in 2022
2022 has been a volatile year: impact of Russia-Ukraine War, ongoing Covid-19 concerns in China, higher energy costs in Europe, rising interest rates, fears of recession and continuous supply-chain disruptions have taken their toll on the aluminium market
* Demand in Middle East up by 4% YoY fuelled by higher consumption in UAE (+7% YoY), Bahrain (+1% YoY) & KSA (+1% YoY)
* Consumption in North America was relatively good (+2% YoY) supported by infrastructure spending as well as surge in the auto and packaging sectors
* Shy growth in Chinese consumption (+1% YoY) owing to Covid -19 lockdowns and logistic challenges
* Lower power availability, higher energy costs and inflation continue to weigh on European demand (-3% YoY) .
LME prices and premiums
* LME-Cash averaged $2,707/t in 2022 -- up by 9% YoY
* LME inventories remain low at 447Kt by end-2022 (-52% YoY) and are at their lowest level in 22 years while Chinese stocks are at 6-year low
Alba pperational highlights
*All-time high production of 1,600,111 MT, up by 2.5% YoY
* Sales’ volume rose to 1,568,134 MT despite market challenges (+1.1% YoY)
* Value Added Sales averaged 66% of the total shipments vs 63% in 2021. VAP sales’ volume exceeds 1,042,000 MT (+7% YoY)
* Alba exceeded Al Hassalah savings target of $110 million by 2022-end (inclusive of $10 million one-off savings) and achieved $115.34 million
* Alba successfully reaches the financial close for its Power Station 5 Block 4 Project [$225 million China Export and Credit Insurance Corporation (SINOSURE”) supported-facility with a 15-year tenor including a 3-year grace period]
* Appointed International Bechtel Co to conduct Line 7 Project’s feasibility study
* Receives two major Investor Relations Awards by Middle East Investor Relations Association
* Mitsubishi Power awarded Long-Term Service Agreement (LTSA) to enhance the reliability, efficiency, and availability of power supply
* To accelerate its Digital Transformation objectives, Alba awarded certificates to 65 employees from 24 different departments – following their successful completion of several Industry 4.0 training courses
Commenting on the company’s performance for the Full Year of 2022, the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa stated: “We are pleased to report another year of strong operational growth and record financial performance despite market challenges.”
These include an all-time Production of 1,600,111 metric tonnes while Value Added Sales exceeds for the first time in history 1,042,000 metric tonnes; for 2nd year in a row, EBITDA was at record levels of $1.502 billion; and profit hit the three-comma club again by setting another precedent of $1.107 billion, he said.
“These impressive results wouldn’t have been made possible without the strategic oversight of HRH the Crown Prince and Prime Minister Prince Salman bin Hamad Al Khalifa. Such performance has allowed us not only to accelerate servicing our loans but also increase the dividend pay out to our shareholders,” he said.
Alba’s Chief Executive Officer, Ali Al Baqali, added: “Our resilience as a team has enabled us to generate an outstanding performance across key performance metrics as well as set new precedents and I am confident that we will continue to do so in 2023.
“I call upon each employee and contractor’s personnel to act on our 2023 Objectives – Safety: our operating license, Al Hassalah top-up, readiness to take off safely, and don’t limit yourself -- to finish strong against the challenging economic backdrop.” – TradeArabia News Service