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Aluminium Bahrain (ALBH)


Monday 14 November, 2016

Aluminium Bahrain

3rd Quarter Results

RNS Number : 0336P
Aluminium Bahrain B.S.C.
13 November 2016

Media Release - November 13, 2016


Aluminium Bahrain B.S.C (Alba) presents its financial results as per the International Financial Reporting Standards (IFRS) accounting rules. All investors and reporters are asked to read Alba’s Q3 2016 Unaudited Financial Statements posted at
Alba’s results for the Third Quarter of 2016 are summarised below:




Alba Q3 2016 Net Income Jumps 65%YoY


Q3 2016 Industry Highlights


·    World consumption up by 5% YoY while production up by 3% YoY, Asian demand rose by 6% YoY mainly supported by Chinese Consumption (7% YoY). MENA consumption remains strong (6.5% YoY) driven by major infrastructure spending in Saudi Arabia alone (20% YoY). Europe demand up by 2% YoY with consumption in North America almost flat (1.5% YoY)

·    LME inventories at 2.1 million metric tonnes in September 2016

·    Physical premiums prices continue to float at lower range

·    3Q16 cash-average was US$1,620/t with LME ranging between US$1,546/t on September 12 and US$1,691/t on August 18






Q3 2016 Alba Highlights

·    Launch of Safety Campaign 'Safety at the Heart of Alba'

·    Alba was able to increase its sales volume by 3.1% YoY while production was up by 2.4% YoY

·    Value-Added Sales averaged 58% of total shipments in Q3

·    Project Titan Phase II on track with Year To Date (YTD) savings of US$56 per mt

·    Line 6 update:

o Successful closing of US$1.5 billion syndicated term-loan facility

o Award PS5 EPC contract to GE and GAMA Consortium

o Award L6 Power Distribution System (PDS) to Siemens


Q3 & 9 Months 2016 Financial Results


Alba's total sales for the third quarter of 2016 were BD 174.3 million (US$ 463.5 million) versus BD 184.4 million (US$ 490.4 million) for the same period in 2015, a drop of 5% YoY due to a plunge in premium prices. For the nine months of 2016, total sales stood at BD 496.5 million (US$ 1.32 billion), down by 16% YoY versus BD 590.3 million (US$ 1.57 billion) for the same period in 2015 on the back of dual drop in LME and premium prices.

Net Income for the third quarter of 2016 increased by 65% YoY to BD 14.3 million (US$ 38.1 million) versus BD 8.7 million (US$ 23 million) in Q3 2015. The company posted a Net Income of BD 34.8 million (US$ 92.6 million) for the nine months of 2016 versus BD 75.7 million (US$ 201 million), down by 54% due to lower LME and premium prices. 


2016 Alba Priorities

·    Continuous Focus on Safety Initiatives & Talent Management

·    Deliver on Project Titan - Phase II

·    Increase Value-Added Sales

·    Line 6 on Schedule

o Finalize Line 6 ECA financing by Q1 2017



Aluminium Bahrain B.S.C. (Alba) announced the release of its third quarter of 2016 results on Sunday November 13, 2016.


Commenting on Q3 results, the Chairman of Alba's Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:

"I would like to thank all our employees and contractors on completing a safe summer. Alba continues to raise the bar in a challenging environment and was able to maintain its performance on many fronts.

And as we move ahead, we look forward to secure the ECA financing tranche for Line 6."


Alba's Chief Executive Officer, Tim Murray added:

"Alba was able to raise Net Income on the back of a solid operational performance despite a relatively weak physical premium environment.

Alba, also, had a successful and safe summer and I would like to thank our workforce for all their efforts."


Alba's Management will be holding a conference call on Monday November 14, 2016 to discuss Alba's performance for the third quarter 2016 Financial Results as well as outline the company's priorities for the remainder of this year.









About Alba:

Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 960,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.


Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company's shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).




About Line 6 Expansion Project:


Alba's Line 6 Expansion Project is one of the largest brownfield developments in the region. Expected to begin production by early 2019, this Project will boost the smelter's per-annum production by 540,000 metric tonnes, bringing its total production capacity to around 1.5 million metric tonnes per year.

With a CAPEX of approximately US$ 3 billion, the Line 6 Expansion Project involves the construction of a sixth pot line utilising EGA's proprietary DX+ Ultra Technology, a 1,792 MW power station and other industrial services.

Bechtel is the EPCM contractor for the Line 6 Expansion Project smelter. For Power Station 5 (PS 5), GE and GAMA Consortium was awarded the EPC contract, while Siemens is the Power Distribution System contractor.  J.P. Morgan Limited, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project.

The Bankable Feasibility Study was completed by Bechtel in December 2014. In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

The Line 6 Expansion Project will make Alba the world's largest single-site aluminium smelter and be a significant economic boost for the Kingdom of Bahrain due to the many co-investment opportunities through local and foreign aluminium investments.



For further details, please contact:

Eline Hilal

Manager - Investor Relations, Public Relations &

Corporate Secretary

Investor Relations & Public Relations Department



Tel:        (973) 1783 5100

Mob:      (973) 39907255

E-mail: [email protected]


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