Manama: Aluminium Bahrain (Alba), the world’s largest aluminium smelter w/o China, has reported a profit of BD52.2 million (US$138.8 million) for the first quarter of 2021, up by 807% year-over-year (YoY), compared with a profit of BD5.8 million (US$15.3 million) for the same period in 2020. The Company reported Basic and Diluted Earnings per Share of fils 37 for Q1 2021 versus Basic and Diluted Earnings per Share of fils 4 for the same period in 2020.
The total comprehensive income for Q1 2021 stood at BD58.4 million (US$155.4 million) versus total comprehensive loss for the first quarter of 2020 of BD1.6 million (US$4.3 million) – up by 3,539% YoY. Gross Profit for Q1 2021 was BD80.5 million (US$214 million) versus BD33.5 million (US$89.2 million) for the same period in 2020 – up by 140% YoY.
Alba generated BD302.7 million (US$805.1 million) revenue in Q1 2021, versus BD275.9 million (US$733.8 million) in Q1 2020 – up by 10% YoY.
Total Equity as at 31 March 2021 stood at BD1.13billion (US$3,025.4 million), up by 5%, versus BD1.07 billion (US$2,871.1 million) as at 31 December 2020. Alba’s Total assets as at 31 March 2021 were BD2.43 billion (US$6,477.4 million) versus BD2.35 billion (US$6,259.8 million) as at 31 December 2020, up by 3%.
Alba’s top-line were driven in the first quarter of 2021 by higher LME prices (+24% YoY) and partially offset by lower Sales’ volume (a drop of 6% YoY) while the bottom-line was driven by higher top-line and partially impacted by higher depreciation as well as higher General and Selling Expenses.
Aluminium market recovered in Q1 after COVID-19 pandemic left its mark on the world in 2020. World market consumption surge by 17% YoY. More spending/stimulus by Governments across the globe translated in strong metal consumption in many markets. The strong demand for Aluminium metal driven by energy transition and supply constraints. Chinese consumption surged to pre-pandemic levels (+27% YoY).
“The best way to foresee a sustainable future is to plan it. Alba is where it is today thanks to the guidance and wise directives of Bahrain’s leadership as well as their farsighted vision and support towards the Line 6 Expansion Project – which has become a reality – and for trusting us to achieve this landmark project,” Shaikh Daij Bin Salman Bin Daij Al Khalifa, the Chairman of Alba’s Board of Directors, said.
“I also take the opportunity to thank HRH the Crown Prince and Prime Minister for his thought-decision to freeze natural gas price at US$3.75/MMBTU for a year. HRH directive reinforces his unlimited support to Alba’s growth and development which along with stronger metal demand, higher LME price and continuous improvements in production efficiencies will create greater value for Alba’s shareholders,” he said.
“We had a strong come-back and we delivered a solid quarter on many fronts: Alba operations continue to run at full run-rate. The higher productivity was made possible thanks to Line 6; VAP Sales’ volume – highest on record in Alba’s history (218,767 metric tonnes); A record-high EBITDA margin in the Company’s 50-years of commercial operations – 29.8% and highest-ever recorded profit in a quarter of BD52.2 million (US$139 million), up by 807% YoY,” the Chairman said.
“If we do what we’ve always done, we will end-up with what we’ve always gotten. We had to think differently, thanks to this pandemic, to advance our performance as a Company on the operational and financial profitability fronts. It’s thanks to our agile workforce that we have been able to bounce-back and start 2021 strong. We also take pride in our Safety achievement as we topped collectively more than 10 million safe-working hours without LTI,” Ali Al Baqali, Alba’s Chief Executive Officer, said.
“I am optimistic about our business and confident that our performance will exceed our ambitious objectives – Safety Excellence, higher productivity, lean operations as we move forward in 2021.”
