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Aluminium Bahrain (ALBH)


Thursday 30 July, 2015

Aluminium Bahrain

Alba Q2 H1 2015 Results

RNS Number : 5318U
Aluminium Bahrain B.S.C.
30 July 2015

Media Release - July 30, 2015




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Alba H1 results jump but industry is facing strong headwinds


·     Net Income up by 107% YoY in H1 2015

·     Gearing for Line 6 Expansion Project

·     Interim Dividend of BD 7.9 million (US$ 21 million) proposed by the Board


Q2 2015 Industry Highlights

·    Global aluminium demand continues to grow with world consumption up by 5% Year-on-Year (YoY); however, significant drop in physical premiums and LME prices is expected in the 2nd half of 2015.

·    World production rose by 7% YoY as compared to Q2 2014.

·    LME inventories at 3.5 million metric tonnes (mt) in June.

·    The LME cash average at US$ 1,769/t in Q2 2015 compared to US$ 1,798/t for the same period last year.  


H1 2015 Alba Highlights

·    Launch of Summer 'Safety Jungle Campaign'.

·    Line 6 Expansion Project approved during EGM in June 2015 and will increase Alba's capacity by 514,000 metric tonnes to reach a total production of 1,450,000 mt.

·    Production up by 3.1% YoY thanks to a strong operational performance.

·    Value-Added Sales were 66% versus 65% in Q2 2014.

·    Physical premiums up by 47% YoY but sharp decline is expected in Q3 2015.


Q2 & H1 2015 Financial Results

Alba's Total Sales for the first half of 2015 were up by 8% YoY to reach BD 405.9 million (US$ 1.080 billion) versus BD 376.4 million (US$ 1.001 billion) in H1 2014 thanks to favourable management performance. Total Sales for the second quarter of 2015 were BD 199.3 million (US$ 530 million) compared to BD 193.6 million (US$ 515 million) for the same period in 2014.

The company posted a Net Income of BD 66.9 million (US$ 178 million) in H1 2015 versus BD 32.3 million (US$ 86 million) for the same period in 2014, up by 107% YoY. Net Income for the second quarter of 2015 stood at BD 29.8 million (US$ 79 million) compared to BD 15.2 million (US$ 41 million) in Q2 2014, an increase of 96% YoY.

The Board has recommended an Interim Cash Dividend of 5.5 Fils per share, which is BD 7.9 million (US$ 21 million) to be paid in September 2015.


2015 Alba Priorities:

·    Continuous focus on Safety, Training and Development Initiatives programs.

·    Deliver on Project Titan.

·    Sustained focus on Value-Added Sales.

·    Line 6 Project Expansion.


Aluminium Bahrain B.S.C. (Alba) announced the release of its second quarter and first half of 2015 results on Wednesday, July 29, 2015.


Commenting on Q2 & H1 2015 Results, the Chairman of Alba's Board of Directors, Daij bin Salman bin Daij Al Khalifa:

"Alba was able to outperform the industry and continue to deliver on Safety. We plan to use this positive momentum as we gear-up for Line 6 Expansion Project which will make Alba the largest single-site aluminium smelter in the world."


Alba's Chief Executive Officer, Tim Murray added:

"Alba continues to excel in what we control -- which is Safety, Production and Cost.  As we look ahead for the remainder of 2015, we see a large drop in the all-in-aluminium prices; however, we expect to deliver solid results despite these challenges."

Alba's Management will be holding a conference call on Wednesday, July 29, 2015 (post-closing of Bahrain trading-hours) to discuss Alba's performance for the second quarter and first-half of 2015 results as well as outline the company's priorities for the remainder of this year.



Photo Caption:

1)     Alba's Chairman, Daij Bin Salman Bin Daij Al Khalifa

2)     Alba's Chief Executive, Tim Murray


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 931,000 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:


Line 6 Expansion Project, expected to begin production by early 2019, will boost the per-annum production by 514,000 metric tonnes, bringing the total production capacity of Alba to around 1.450 million metric tonnes per year.

Bechtel Canada completed the Bankable Feasibility study for the $3.5 billion Line 6 Expansion Project in December 2014. DX+ Technology is selected as the base for Line 6, while J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors of the Project.

The Line 6 Expansion Project will enhance the downstream industry by creating many co-investment opportunities through local and foreign aluminium investments. It will create hundreds of jobs, directly and indirectly, which will be a significant economic boost for the Kingdom of Bahrain.




For further details, please contact:

Eline Hilal

Investor & Public Relations Manager


Tel:        (973) 1783 5100

Mob:      (973) 39907255

E-mail: [email protected]



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