Home / Metal News / Alumina prices soar Bahrain Aluminium's third quarter net profit fell 44%

Alumina prices soar Bahrain Aluminium's third quarter net profit fell 44%

iconOct 30, 2018 15:48
Source:SMM

SMM10, March 30: in the third quarter of 2018, (Alba) 's net income was $38 million, compared with $68.5 million in the same period in 2017. Bahrain Aluminium's net profit fell 44 per cent as a result of rising alumina prices (up 60 per cent from a year earlier).

Alba's revenues and profits in the first three quarters of 2018 were largely driven by higher metal sales, which were partly offset by higher alumina prices, the company said.

In the first three quarters of 2018, Alba's net profit was $205.6 million, up 12 per cent from a year earlier, compared with $183.5 million in the first three quarters of 2017. Total sales / revenue reached $1.8612 billion, up 16% from a year earlier, compared with $1.6091 billion over the same period.

Alba's total assets reached $5.668 billion as of September 30, 2018, compared with $4.484 billion in the same period in 2017, up 26 per cent from a year earlier. As of September 30, 2018, total shareholder equity was $2.903 billion, compared with $2.799 billion in the same period last year, up 4 per cent from a year earlier.

Other highlights:

Total sales and production reached 248970 metric tons of (MT) and 251472 metric tons, respectively.

In the third quarter of 2018, Alba value-added sales accounted for an average of 60 per cent of total shipments.

Income from the Titan-III phase was US $83 per tonne.

The expansion of Line 6 is under way: the overall progress of the smelter on Line 6 is more than 70 per cent, and the overall progress of the capacity expansion project (PS 5 and PDS) is 72 per cent and 92 per cent.

Highlights of the industry in the third quarter include:

Despite trade tensions, global demand remained robust, with global consumption up 4 per cent from a year earlier. Demand in the Middle East and North Africa rose 10 per cent and 25 per cent year-on-year, driven by Saudi infrastructure spending. Driven by Chinese consumption, demand in Asia grew by 5% compared with the same period last year, while demand in Europe increased by 3% compared with the same period last year, thanks to strong demand from nuilding & construction (B / C) and the transportation industry, while demand in North America increased by 2% compared with the same period last year. Mainly driven by car production (heavy trucks) and the construction industry.

Global production growth was slow (2 per cent year-on-year); Asian supply rose 3 per cent year-on-year (Chinese supply increased 2 per cent year-on-year), while North American production fell 4 per cent year-on-year due to the late expansion of the New Madrid smelter.

Alumina prices have soared due to supply shortages, at an average of $540 per tonne.

Referring to Alba's financial results for the first three quarters of 2018, Shaikh Daij Bin Salman Bin Daij Al Khalifa, chairman of the company, said: "despite the rise in alumina prices, Alba's financial performance is still good. As the expansion of Line 6 progresses, we look forward to the safe start of Line 6 by January 1, 2019. "

Tim Murray (Tim Murray), chief executive of Alba, added: "the unprecedented surge in alumina prices has had a significant impact on the aluminium industry, and Alba is no exception. Despite the negative impact of alumina prices, Alba has achieved robust financial performance through our Titan project cost improvement program. I would also like to thank our staff and contractors for the great importance they attach to safety issues during this difficult summer. -TradeArabia News Service

Alumina
Bahrain Aluminium
third quarter
profit
price

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news