Aluminium Bahrain (Alba) reported net income for the second quarter at BD20.7 million ($54.9 million), a 42 per cent drop from BD35.6 million in Q2 2012 driven by unrealised derivative gains as well as low LME prices.
Sales for the first six months of 2013 were BD382.6 million versus BD383 million in H1 2012. Sales for Q2 reached BD195.5 million compared with BD196.5 million for the same period in 2012.
Net income for the first half of this year at BD61.2 million rose 7 per cent compared with the same period of last year.
The board has recommended an interim cash dividend of 14 fils per share, which is BD 19.7 million.
Commenting on the first half results, the chairman of Alba’s board of directors, Mahmood Hashim Al Kooheji, said: “Amid the downtrend in LME prices, the company closed the first six months of 2013 with a solid bottom line underpinned by higher productivity levels. I would also like to thank the executive management team for improving overall safety performance in the plant.”
Alba’s chief executive, Tim Murray, added: “Despite challenging global macroeconomic conditions coupled with lower LME prices, Alba was able to deliver a healthy financial performance supported by strong operational performance.”
Volume-wise, sales for the first half rose 1.9 per cent to 454,428 tonnes compared to H1 2012 ahead of the company’s own forecast. Production figures were up by 2 per cent, reaching 452,727 tonnes versus 443,533 tonnes.
In addition, Alba was able to capitalise on the sound demand of value-added products and closed the first half of 2013 with an average of 66 per cent of total shipments against 65 per cent.
Commenting on the sales volume and production for H1 2013, Murray, said: “Alba’s overall sales figures continued to gain momentum thanks to the successful implementation of a focused marketing strategy on the back of enhanced productivity.”
Murray, chief financial officer Ali Al Baqali, chief operations officer Isa Al Ansari and investor relations manager Eline Hilal will be on a road show with investors in Dubai, New York City and Boston to discuss the company’s performance for the first half and second quarter of 2013 as well as outline Alba’s priorities and plans for the remainder of the year.
Meanwhile, the company starting its month-long annual Summer Training Programme and said it is committed to providing opportunities for young Bahrainis to gain a taste of professional life.
The programme aims to provide high school graduates, university students and Bahrain Training Institute trainees along with children of Alba’s employees the chance of working in Alba during their summer break.
The company’s acting director for administration, Abdul Rahman Janahi, and training and recruitment manager, Rawdha Salman Alaradi, presided over the opening ceremony.
The students will be based in different departments across the organisation. Training includes business ethics and enterprise in action, environmental issues and safety, interviewing skills and CV writing.
The company has donated BD13,300 towards the setting up of an electronic library at the Bahrain Medical Society as part of the company’s initiative to bolster knowledge support for members of Bahrain’s medical community.
The library – which will be under Alba’s name – will cover a large database of research papers, medical journals and other scientific publications.
Chairman Al Kooheji presented the cheque on Alba’s behalf to the director of the Bahrain Medical Society, Dr Muha Al Mouqlla.
In other developments, a group of over 70 students of the Association Internationale des Etudiants en Sciences Economiques et Commerciales (AIESEC), a global youth organisation visited the company. The students – representing over 15 countries – are currently pursuing undergraduate and postgraduate studies in business, economics, mathematics and hospitality.
The students were given short presentations on the company following a brief tour of the plant.
Alba consistently ranks as one of the largest and most modern aluminium smelters in the world. It produces more than 890,000 tonnes per year of the highest grade aluminium.