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Aluminium Bahrain (ALBH)


Monday 24 July, 2017

Aluminium Bahrain

Alba's Net Income Jumps by 111% in First Half 2017

RNS Number : 8997L
Aluminium Bahrain B.S.C.
24 July 2017


Media Release - July 24, 2017


Alba's Net Income Jumps by 111% in First Half of 2017


Q2 2017 Industry Highlights

·    With a broad positive macroeconomic backdrop, stable investor sentiment and improving industry fundamentals, the world consumption grew by 6% Year-on-Year (YoY) while world production was up by 9% YoY.

·    Aluminium is the top performing metal amongst commodities. Physical premium prices continue to float at the same range of Q1 2017.

·    LME inventories at 1.4 million metric tonnes (mt) in June

·    The LME cash average stood at US$ 1,911/mt in Q2 2017 compared to US$ 1,571/mt for the same period in 2016.


H1 2017 Alba Highlights

·    Reduction Line 5 resumes normal operations

·    Launch of Summer 'Safety Tomorrowland Campaign'

·    Sales and Production volumes down by 3.9% YoY (453,089 mt) and 4.5% YoY (453,395 mt)

·    Alba Value-Added Sales averaged 58% of total shipments versus 54% in H1 2016

·    Project Titan - Phase II: YTD savings at US$ 61/mt (impacted by timing of Line 5 recovery)

·    Solid progress on Line 6:

 - Closed the first tranche of c.US$ 700 million from Export Credit Financing

 - Line 6 construction site-works underway


Q2 & H1 2017 Financial Results

Alba's top-line and bottom-line for the second and first-half of 2017 were primarily driven by higher LME prices (an increase of 22%YoY) and favourable management performance.

The Company reported Total Sales of BD 179.3 million (US$ 476.9 million) in the second quarter of 2017, versus BD 165.7 million (US$ 441 million) for the same period in 2016, up 8% YoY. Total Sales in the first half of 2017 stood at BD 369.7 million (US$ 983.3 million), up by 15% YoY, versus BD 322.2 million (US$ 856.8 million) in H1 2016.

The Company generated a Net Income of BD 17.7 million (US$ 47.1 million) in Q2 2017, up by 8.5% YoY, compared to BD 16.3 million (US$ 43. 4 million) in Q2 2016. Net Income for the first half of 2017 rose by 111% YoY to BD 43.3 million (US$ 115.2 million) versus BD 20.5million (US$ 54.5 million) for the same period in 2016.    

In addition, Alba shareholders approved dividend of BD 29.6 million (US$ 78.7 million) during the AGM on 21 March 2017 and were paid from April 02, 2017.


2017 Alba Priorities:

·    Continuous Focus on Safety TomorrowLand Initiatives

·    Normalization of Line 5 Operations

·    Deliver on Project Titan - Phase II

·    Leverage Strong Demand on Value-Added Sales

·    Progress on Line 6:

-     Secure Second Tranche of ECA-Covered Facility

-     Award Remaining Packages in 2nd Half of 2017


Commenting on Q2 & H1 2017 Financial Results, the Chairman of Alba's Board of Directors, Daij bin Salman bin Daij Al Khalifa:

"Alba improved its bottom-line despite the impact of the power outage.  I would like to thank our employees and contractors for their continuous efforts in safely restoring Line 5 pots to normal operations."


Alba's Chief Executive Officer, Tim Murray added:

"We delivered exceptional results taking into account the strain that Line 5 recovery put on our operations.

I would like to thank all the employees and contractors for their resilience on setting a new industry benchmark on recovery."


Alba's Management will be holding a conference call on Wednesday, July 26, 2017 to discuss Alba's performance for the second quarter and first-half of 2017 as well as outline the Company's priorities for the remainder of 2017.





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 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, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project.

In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

Alba successfully closed a US$ 1.5 Billion syndicated term-loan facility in October 2016, comprising two tranches: Conventional Facility & and Islamic Facility. Alba also secured commitments of c. US$ 700 million from Export Credit Agency (ECA) supported facilities in April 2017. The Front End Engineering Design (FEED) study for the Project was completed in the first quarter of 2017 while the construction site-works have started in the second quarter of 2017 and will be completed by September 2017. 

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 and Corporate Secretary


Tel:        (973) 1783 5100 

E-mail: [email protected]



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