Aluminium Bahrain (Alba) swung to a net profit of BD13.7 million ($36.5 million) in the fourth quarter (Q4) of 2016 versus a net loss of BD15.7 million ($41.8 million) for the same period in 2015, an increase of 187 per cent year-on-year (YoY).
Alba’s net income for the full year 2016 stood at BD48.4 million ($128.7 million), compared to BD59.9 million ($159.5 million) in 2015, down by 19 per cent YoY, the company said.
The aluminium major reported total sales of BD669.8 million ($1.781 billion) in 2016 versus BD766.7 million ($2.039 billion) in 2015, down by 13 per cent YoY due to the double dip of LME and premium prices.
As for the fourth quarter of 2016, sales totalled BD181.6 million ($483 million) down by about 2 per cent versus BD176.3 million ($469 million) in Q4 2015.
The company achieved a record production of 971,420 metric tonnes in the year.
Alba said its priorities for 2017 include: Continuous focus on safety initiatives and talent management; deliver on Project Titan - Phase II and reduce Alba’s cash-cost by $100 metric tonne by end of 2017; leverage strong physical demand conditions and focus on value-added sales; increase creep capacity with minimal capital investment; and keeping Line 6 on schedule: Finalise ECA financing tranche by Q1 2017.
Commenting on the full-year results of 2016, 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, our focus will 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 Q4 of 2016.
“In 2017, we will be launching our Safety Tomorrowland initiative to further improve the health and safety of our employees. In addition, the preparations for the Line 6 transformation will begin which will make Alba the largest single-site smelter in the world in 2019.”
Commenting on the market, the statement said demand growth for aluminium remains healthy with world consumption at 59.6 million metric tonnes (mt), up 5 per cent YoY. Asian demand rose 7 per cent YoY supported by consumption in China (+5 per cent YoY). Mena demand continues to be strong (+6 per cent YoY), driven by Saudi Arabia infrastructure spending (+16 per cent YoY). In addition, Europe turned a corner with consumption improving by 3 per cent YoY thanks to auto and construction production in Germany while demand in North America was up by 2 per cent YoY mainly denominated by the automobile production. World production of aluminium was up by 3 per cent.
Holds ‘Next Generation’ leadership workshop
Meanwhile, the company, in line with its commitment to strengthen the company›s competitive edge, conducted a strategic offsite workshop ‘Next Generation Leadership Program’ for executives, directors and managers.
The ‘Next Generation Leadership Program’ – designed and presented by Prof Scott Snell, from the prestigious Darden Graduate School of Business at the University of Virginia, USA - comprises a two-module curriculum focused on leadership through managing change, growth, strategy execution, agility and talent management and leadership pipeline.
Speaking at the workshop, Murray said: “At Alba we recognise the importance of developing the next generation of leaders. This becomes even more critical as Alba goes down the path of becoming the largest single-site smelter in the world upon commissioning of the Line 6 Expansion Project.”