MANAMA: Alba posted 2016 Q4 net income of US$ 37 million compared to a Q4 2015 net loss of US$ 42 million and full year net income reached US$ 129 million.
Alba, one of the largest aluminium smelters and reported a record breaking-year with production surging to 971,420 metric tonnes while the year 2016 another year of exceptional safety performance.
“Alba was able to achieve a breakthrough record in its production and sales volumes amidst tough LME market conditions and was able to deliver on its targets. Looking ahead, our focus will remain on Safety and delivering on the Line 6 Expansion Project,” Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, said.
“The 2016 proved to be a year of challenges and opportunities for the aluminium industry wherein Alba managed to outperform the industry and had a very strong finish in the 4th quarter of 2016,” Alba’s Chief Executive Officer, Tim Murray added.
“In 2017, we will be launching our Safety Tomorrowland initiative to further improve the health and safety of our employees. In addition, the preparations for the Line 6 transformation will begin which will make Alba the largest single-site smelter in the world in 2019.”
Demand growth for aluminium remains healthy with world consumption at 59.6 million metric tonnes (mt) and up by 5% YoY. Asian demand rose by 7% YoY supported by consumption in China (+5% YoY). MENA demand continues to be strong (+6% YoY), driven by Saudi Arabia infrastructure spending (+16% YoY). In addition, Europe turned a corner with consumption improving by 3%YoY thanks to auto and construction production in Germany while Demand in North America was up by 2% YoY mainly denominated by the automobile production.
In year 2016, Alba sustains continuous improvement in safety performance – Alba won Gold at the International Green Apple Awards. Sales volume up by 2.3 % YoY to reach 974,014 mt while production volume stood at 971,420 mt (+1.1% YoY). Project Titan – Phase II cost savings of US$78 mt. Alba managed to close 2016 with its Value-Added (VA) sales averaging 56% of total shipments. Alba successfully upgrades Casthouse2 to produce Foundry Alloys in T-Ingot shape and ramp-up reduction Lines 4 & 5 Creep Project.
Alba reported total sales of BD 669.8 million (US$ 1. 781 billion) in 2016 versus BD 766.7 million (US$ 2.039 billion) in 2015, down by 13% YoY due to the double dip of LME and premium prices. As for the fourth quarter of 2016, total sales totalled BD 181.6 million (US$ 483 million) down by about 2% YoY versus BD 176.3 million (US$ 469 million) in Q4 2015.
Net income stood at BD 48.4 million (US$ 128.7 million) in 2016 compared to BD 59.9 million
(US$ 159.5 million) in 2015 – down by 19% YoY; while the Company reported a Net Profit of
BD 13.7 million (US$ 36.5 million) in the fourth quarter of 2016 versus Net Loss of BD 15.7 million (US$ 41.8 million) for the same period in 2015, up by 187% YoY.
In 2017, Alba priorities include continuous focus on Safety Initiatives and Talent Management; deliver on Project Titan – Phase II and reduce Alba’s cash-cost by US$ 100 mt by end of 2017; leverage strong physical demand conditions and focus on Value-Added Sales; increase Creep Capacity with Minimal Capital Investment; line 6 on Schedule and finalize ECA Financing Tranche by Q1 2017.