Alba Q1 net income up by US$57m

Manama : Aluminium Bahrain (Alba) yesterday announced financial results for the first quarter of 2017 reporting a jump in its top-line and bottom-line performance, driven primarily by higher LME prices.

The company also approved a dividend of BD 29.6 million (US$78.7m) to be paid from April 2nd 2017.

Alba’s total sales for the first quarter of 2017 jumped by 22 per cent YoY to reach BD190.4m (US$506m) versus BD156.4m (US$416m) for the same period in 2016. The company posted a net income of BD25.6m (US$68m) compared to BD4.2m (US$11m) in Q1 2016, an increase of 506pc YoY.

LME cash-average for the first quarter of 2017 was US$1,850/t up by 22 per cent YoY. LME inventories were at 1.8m mt in March.

Sales volume during the priod was up by 4.9pc YoY (242,932 mt) and production up by 5.6pc YoY (248,776 mt).

Global physical demand remains healthy with world consumption up by 6pc YoY. Asian demand rose by 7pc YoY led by Chinese consumption (+8pc YoY). MENA demand grew by 5pc YoY driven by major infrastructure spending in Saudi Arabia (+13pc YoY). In addition, demand in North America surged by 3pc YoY supported by firm growth in the auto production while Europe consumption rose modestly by 2pc YoY attributed to good demand in construction and automotive sectors.

World production rose by 9pc YoY supported by Chinese output (+17pc YoY), leading  the world market to be in surplus with China (+664Kt) and in deficit w/o China (-414Kt).

Commenting on Alba’s financial performance in Q1 2017, Chairman, Daij Bin Salman Bin Daij Al Khalifa said: “Together with our solid financial basis, we will be able to transform Alba as Line 6 will shape our future for the generations to come.”