Alba released its full year and fourth quarter 2012 results during a meeting of the company’s Board of Directors on Wednesday, February 13, 2013.
Alba posted a net income for 2012 of $257million against $564 million in 2011 which is a drop of 54% YoY driven by lower LME prices and higher energy costs.
Aluminium cash prices at the London Metals Exchange dropped by 16% in 2012 with an average cash price of $2,019 mt versus $2,398 mt in 2011.
Demand in North America continues to grow with 5.6% YoY driven by automotive and construction sectors; Asian consumption propelled by China (8% YoY) and India (6% YoY). MENA demand up by 5.5% YoY while demand in Europe down by 4.8% due to a decline in automotive production.
“Despite tough LME market conditions, Alba’s resilient business model has enabled the company to achieve a healthy financial performance in 2012 thanks to the sustained focus on Operational Excellence and the support of our dedicated workforce,” Alba’s Chief Executive, Tim Murray said.
“As the Aluminium industry outlook looks positive, Alba is well-positioned to embark on 2013 thanks to the milestones achieved in 2012 which will lay the foundations for a better overall performance,” he added.
Alba achieved recurrent savings of $40 million in 2012 ahead of the $30 million target. Alba increased production by 8,907 metric tonnes despite tough LME market conditions.
In 2012, the actual cash delivered to the shareholders was $203 million vs. $267 million in 2011. The board recommended an additional dividend of $52 million bringing the total dividend for 2012 to $105 million.
“Alba turned in yet another record-breaking year, with production reaching 890,217 metric tonnes in 2012. Amid the downtrend in LME prices, the company was still able to sustain its healthy performance – a testament on our ability to execute against strategy thanks to the leadership of our Executive Management Team and the support showed by Alba’s workforce,” the Chairman of Alba’s Board of Directors, Mahmood Hashim Al Kooheji, added.
“Furthermore, distributing a cash dividend of $105 million for 2012 – 28 fils per share – endorses the company’s strong business fundamentals which continuously deliver value to its shareholders.”
Alba’s Chief Executive Officer, Tim Murray, Acting Chief Finance and Supply Officer, Ali Al Baqali and Investor Relations Manager, Eline Hilal will be holding a series of meetings with investors in Bahrain, London and New York City. They will be making a presentation on the Full Year and Fourth Quarter Results, discuss Alba’s performance for 2012 as well as outline the company’s priorities and plans for 2013.