Alba’s Q4 net income improves by $79 million

Manama : Aluminium Bahrain (Alba) yesterday presented its financial results for the Full-Year and fourth quarter of 2016 reporting total sales of BD669.8 million (US$1. 781 billion) versus BD766.7m (US$2.039bn) in 2015, down by 13 per cent Year-over-Year due to the double dip of LME and premium prices.

Net Income stood at BD48.4m (US$128.7m) in 2016 compared to BD59.9m (US$159.5m) in 2015 - down by 19pc YoY.

For the fourth quarter of 2016, total sales totalled BD181.6m (US$483m) down by about 2pc YoY versus BD176.3m (US$469m) in Q4 2015. 

Net Profit was BD13.7m (US$36.5m) in the fourth quarter of 2016 versus Net Loss of BD15.7m (US$41.8mn) in the same period of 2015, which is up 187pc YoY.

Commenting on the results, 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, Alba said its focus would 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.  

According to the statement, demand growth for aluminium remained healthy with world consumption at 59.6 million metric tonnes (mt) and up by 5pc YoY. Asian demand rose by 7pc YoY supported by consumption in China (+5% YoY). 

In the MENA region, demand continued to be strong (+6pc YoY), driven by Saudi Arabia infrastructure spending (+16pc YoY). In addition, Europe turned a corner with consumption improving by 3pc YoY thanks to auto and construction production in Germany while Demand in North America was up by 2pc YoY mainly denominated by the automobile production. 

World production was up by 3pc YoY leading the world market to be in deficit with China (-712Kt) and without China (-723Kt).

“In 2017, we will be launching our Safety Tomorrowland initiative to further improve the health and safety. The preparations for the Line 6 transformation will begin which will make Alba the largest single-site smelter in the world in 2019.”  

Alba’s Management will be holding a conference call on Monday to discuss Alba’s performance for the 2016 Full-Year Results as well as outline the Company’s priorities for the remainder of 2017.