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TOTAL SALES DOWN 13pc

Alba board members with executive management at a meeting.

Alba swings to profit in Q4; 2016 gains total $129m

MANAMA, February 9, 2017

Aluminium Bahrain (Alba) swung to a net profit of BD13.7 million ($36.5 million) in the fourth quarter of 2016 versus a net loss of BD15.7 million ($41.8 million) for the same period in 2015, an increase of 187 per cent year-on-year.

Alba’s net Income for the full year 2016 stood at BD48.4 million ($128.7 million), compared to BD59.9 million ($159.5 million) in 2015, down by 19 per cent YoY, the company said.

The aluminium major reported total sales of BD669.8 million ($1.781 billion) in 2016 versus BD766.7 million ($2.039 billion) in 2015, down by 13 per cent YoY due to the double dip of LME and premium prices.

As for the fourth quarter of 2016, sales totalled BD181.6 million ($483 million) down by about 2 per cent versus BD176.3 million ($469 million) in Q4 2015.

The company achieved a record production of 971,420 metric tonnes in the year.

Alba said its priorities for 2017 include:
•    Continuous focus on safety initiatives and talent management.
•    Deliver on Project Titan - Phase II and reduce Alba’s cash-cost by $100 metric tonne by end of 2017.
•    Leverage strong physical demand conditions and focus on value-added sales.
•    Increase creep capacity with minimal capital investment.
•    Keeping Line 6 on schedule: Finalise ECA financing tranche by Q1 2017.

Commenting on the full-year results of 2016, chairman of Alba’s board of directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, said: “Alba was able to achieve a breakthrough record in its production and sales volumes amidst tough LME market conditions and was able to deliver on its targets.

“Looking ahead, our focus will remain on safety and delivering on the Line 6 Expansion Project.”

Alba’s chief executive officer Tim Murray added: “2016 proved to be a year of challenges and opportunities for the aluminium industry wherein Alba managed to outperform the industry and had a very strong finish in the 4th quarter of 2016.
 
“In 2017, we will be launching our Safety Tomorrowland initiative to further improve the health and safety of our employees. In addition, the preparations for the Line 6 transformation will begin which will make Alba the largest single-site smelter in the world in 2019.”  

Commenting on the market, the statement said demand growth for aluminium remains healthy with world consumption at 59.6 million metric tonnes (mt), up 5 per cent YoY. Asian demand rose 7 per cent YoY supported by consumption in China (+5 per cent YoY). Mena demand continues to be strong (+6 per cent YoY), driven by Saudi Arabia infrastructure spending (+16% YoY). In addition, Europe turned a corner with consumption improving by 3 per cent YoY thanks to auto and construction production in Germany while demand in North America was up by 2 per cent YoY mainly denominated by the automobile production. World production of aluminium was up by 3 per cent.

Alba's management will be holding a conference call on February 13 to discuss Alba's performance for the 2016 full-year results as well as outline the company's priorities for the remainder of 2017.  – TradeArabia News Service




Tags: Bahrain | aluminium | Alba |

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