The drop in net Income was attributable to the $85 million (BD 32 million) one-time gain from the Alcoa settlement recorded in the fourth quarter of 2012 and lower LME prices. Net income for the fourth quarter of 2013 stood at US$ 36 million (BD 13.7 million), a drop of 74% from US$ 140 million (BD 52.6 million) driven by the one-time gain from the Alcoa settlement recorded in 2012.
“The year 2013 proved to be another breakthrough year in the company’s history with Alba achieving record sales and production despite tough LME market conditions. Our focus to deliver value to our shareholders is evidenced by 28% increase in the 2013 dividend,” Mahmood Hashim Al Kooheji, Chairman of Alba’s Board of Directors, said.
“Alba continues to raise the bar by leveraging our operational excellence program to exceed our targets. Our ability to generate cash during difficult economic times shows the commitment and ownership of all the employees in Alba. As we move into 2014 we believe the company is well positioned to excel to even higher levels,” Tim Murray, Alba’s Chief Executive Officer, said.
Aluminium demand remains healthy with world consumption up by 5.3% year-on-year (YoY). Asian demand up by 7% YoY supported by a robust growth in China (+10% YoY); MENA demand up by 6% YoY on the back of major investments in infrastructure. Steady demand in North America (+2% YoY) mainly driven by automotive body sheets and aerospace production. In addition, Europe turned a corner with improved demand (+1% YoY) on the back of construction & packaging sectors
World production up by 4.3% YoY and is expected to rise with the greenfield projects ramp-up set to lift output in the Middle East (Ma’aden & Emal 2) as well as in China
Lower Aluminium cash prices at the London Metal Exchange will continue to pressure western marginal producers to further cut output.
Alba’s sales for the full-year of 2013 were US$ 1.993 billion (BD 749.3 million) versus US$ 1.978 billion (BD 743.7 million) in 2012. As for the fourth quarter of 2013, Alba’s sales totalled US$ 488 million (BD 183.4 million) versus US$ 502 million (BD 188.8 million) in Q4 2012, down by 3% on the back of lower LME prices.
The total dividend proposed for fiscal year 2013 is US$ 135 million (BD 50.7 million) versus 2012 total dividend of US$ 105 million (BD 39.5 million). The Board recommended a final 2013 dividend of US$ 82 million (BD 30.9 million) in addition to the interim dividend already paid in September 2013 of US$ 53 million (BD 19.8 million).