Alba, one of the largest aluminium smelters in the world, reported sales rising to $645 million in Q2 2011 as compared to $534 million in Q2 2010. The company’s EBITDA reached at $175 million in Q2 2011 as compared to $147 million in Q2 2010
Alba released the company’s half-year and second-quarter 2011 results and said that the net income was impacted by unrealised derivative gains in Q2 partially offset by strong overall performance and distribution of interim cash dividend of 27 fils per share as proposed by the board.
“After a strong Q1, Alba confirmed a sound performance in Q2 by maintaining a steady volume growth trend in production, sales and profits for the first half of the year thanks to our Continuous Improvement Program which was ahead of our forecast,” Laurent Schmitt, Alba’s Chief Executive, said.
“Despite the social and political challenges faced during the last months and some exceptional one-time costs, Alba showed a strong resilience reflected in its recurring financial performance increase as compared to the same period of 2010,” he added.
“As the Aluminium industry outlook looks positive, we are confident that the successes achieved in H1 2011 will prove to be the foundation for better overall performance of the company for the rest of 2011.”
“I am delighted by the positive results of H1 2011 Alba has made despite the prevailing uncertainties. This was clearly made possible thanks to the efficiency of the management team and the active cooperation of our loyal workforce who ensured the company maintained the highest level our operations,” Mahmood Al Koohiji, Chairman Alba board of directors, said while commenting on the results.
“Looking forward, Alba is well-placed to exploit the growth opportunity in Aluminium and the management remains optimistic with a positive outlook for the remainder of 2011. Furthermore, distributing an interim Cash Dividend – the second since becoming public – reflects the strength of our cash flow enabling us to reward our shareholders,” Al Koohiji said.
Aluminium demand continues to remain healthy while benefiting from being one of the less sector-dependent base metals.
Other highlights of Q2 financials include additional recurrent savings surpassed target by $9 million by reaching $44 million in H1 2011 while production was increased by 3.5 per cent and sales by 4.3 per cent for the same period.
European sales office in Zurich, Switzerland was opened in June 2011. EBITDA was impacted by 3.4 per cent due to a one time social cost of $22 million recorded in Q2 2011. Alba secured 100 per cent of raw material requirements for 2011 through successful implementation of a multi-source diversification strategy.
Alba’s Chief Executive, Laurent Schmitt and Chief Financial Officer, Tim Murray and IR Manager Eline Hilal will be holding a series of meetings in August with investors in Bahrain, Dubai and London. They will be making a presentation on the second quarter results, discuss Alba’s performance as well as outline the future strategy.
Alba has been consistently ranked as one of the largest aluminium smelters and is known for its technological strength, global competitiveness and innovative policies. Alba produces more than 860,000 metric tonnes per annum of aluminium which meet or exceed the industry standard for purity, with products including standard and T-ingots, extrusion billets, rolling slab, propertzi ingots, and molten aluminium. It has also maintained a strong track record of operational safety and environmental compliance.