Aluminium Bahrain (Alba), the world’s largest aluminium smelter on a single site, reported a profit of BD 54.5 million (USD 145 million) for the third quarter of 2024, marking a 215% year-on-year increase compared to BD 17.3 million (USD 46 million) for the same period in 2023.
Basic and diluted earnings per share were fils 39, up from fils 12 in Q3 2023. Total comprehensive income for Q3 2024 was BD 51 million (USD 135.6 million), a 145.7% increase year-on-year, while gross profit reached BD 83.4 million (USD 221.8 million), up 71.6% year-on-year. Revenue from contracts with customers in Q3 rose 8.4% to BD 433.5 million (USD 1,152.8 million).
For the first nine months of 2024, Alba reported a profit of BD 147.5 million (USD 392.2 million), a 55.8% increase year-on-year. Earnings per share for this period were fils 104, up from fils 67 in the same period of 2023. Total comprehensive income for the nine months was BD 145.3 million (USD 386.5 million), up 60.7% year-on-year, while gross profit grew by 23.5% to BD 242.6 million (USD 645.2 million). Revenue from contracts with customers in the nine months reached BD 1,175 million (USD 3,125 million), up 1.6% year-on-year.
As of 30 September 2024, Alba’s total equity stood at BD 1,885.7 million (USD 5,015 million), a 5.4% increase from December 31 2023, while total assets reached BD 2,659.6 million (USD 7,073.5 million), up 4.2%. Alba’s financial performance has been positively influenced by a 4% rise in LME prices for the first nine months and an 11% increase in Q3 2024, although lower premiums (down 15%) have partially offset these gains.
According to CRU Market Intelligence, global aluminium demand is slowly recovering, supported by positive developments such as the US Federal Reserve’s rate cut and China’s stimulus measures. However, demand remains weak in Europe, while the Middle East and North America have shown moderate growth. Global aluminium production rose by 0.5% year-on-year, with China nearing its capacity cap of 45 million metric tonnes, limiting supply growth.
LME prices averaged USD 2,383/t in Q3 2024, an 11% year-on-year increase, with European premiums remaining high due to limited supply.
Alba’s Q3 production was 402,568 MT, a slight decline of 2% year-on-year, while sales volume increased by 0.2% to 431,220 MT. The company achieved significant savings of USD 51.24 million through its cost improvement programme, e-Al Hassalah, against a 2024 target of USD 60 million.
In September, Alba announced a non-binding agreement with Ma’aden to explore a potential business combination with segments of Ma’aden’s aluminium business. Alba has appointed advisors to guide this due diligence process, with updates to be provided as needed.
In alignment with Bahrain’s net-zero emissions goal for 2060, Alba prioritises sustainability, with initiatives including the completion of Block 4 and a new solar farm by Q4 2024. Alba aims to exceed its 2023 net finished production and achieve further cost improvements while advancing projects such as a feasibility study for the New Replacement Line.
Khalid Al Rumaihi, Chairman of Alba’s Board of Directors, stated that Alba’s focus on operational efficiency and strategic initiatives has enabled it to achieve strong financial results despite global challenges. CEO Ali Al Baqali emphasised the company’s commitment to safety and productivity, noting over 26 million safe working hours without any lost time injuries (LTI).
Alba Management will hold a conference call on Wednesday, 13 November 2024 at 3:00 PM Bahrain Time to discuss the financial and operational performance for Q3 and the nine months of 2024 and outline its future strategic priorities.
