Manama: Mahmood Rafique, Editor: With global consumption of aluminum is down by 9% Year-over-Year, Aluminium Bahrain B.S.C. (Alba), has reported a loss of BD16.4 million (US$43.6 million) for the second quarter of 2020, an increase of 392% Year-over-Year (YoY) versus a Loss of BD3.3 million (US$8.9 million) for the same period in 2019. The Company reported Basic and Diluted Loss per Share of fils 12 versus Basic and Diluted Loss per Share of fils 2 for the same period in 2019. The Total Comprehensive Loss for Q2 2020 stood at BD18.2 million (US$ 48.4 million) versus Total Comprehensive Loss for the second quarter of 2019 of BD 3.3 million (US$ 8.9 million) – up by 446% YoY. Gross Profit for the second quarter of 2020 was BD21.6 million (US$57.6 million) versus BD15.4 million (US$40.9 million) in Q2 2019 – up by 41% YoY.
With regards to the First Half of 2020, Alba has reported a Loss of BD10.6 million (US$28.3 million), down by 44% YoY versus a Loss of BD19.1 million (US$50.9 million) for the same period in 2019. For the First Half of 2020, Alba reported Basic and Diluted Loss per Share of fils 8 versus Basic and Diluted Loss per Share of fils 14 for the same period in 2019. Alba’s Total Comprehensive Loss for H1 2020 was BD19.8 million (US$52.7 million), up by 4% YoY, compared to a Total Comprehensive Loss of BD19.1million (US$50.9 million) in H1 2019. Gross Profit for the First Half months of 2020 was BD55.2 million (US$146.8 million) versus BD16.2 million (US$43.2 million) in H1 2019 – up by 241% YoY.
Alba’s top-line was driven in the second quarter of 2020 by higher metal Sales’ volume thanks to Line 6 and impacted by lower LME price [down by 17% Year-over-Year (US$ 1,494/t in Q2 2020 versus US$ 1,793/t in Q2 2019)] while the bottom-line was impacted by higher depreciation and financial charges.
The global spread of COVID-19 pandemic has disrupted the world’s economy. Governments’ strategies have been focused to contain the spread of COVID-19 from restricting travels to closing public services and limiting industrial activity. Commodities have taken the hardest hit and Aluminium supply-chain is not an exception.
COVID-19 pandemic takes its toll on Aluminium demand in major markets, a drop of 35% in US, 30% in Europe and 22% in MENA.
Global Production witnessed a modest growth of 1% YoY. Primary Aluminium production in MENA continues – up by 25% YoY [mainly on the back of Alba’s Line 6 metal]. US manufacturing continues with production in North America up by 5% YoY. Better Shanghai Futures Exchange (SHFE) prices has led the Chinese supply to grow by 2% YoY. Europe supply down by 3% YoY due to COVID-19 disruptions to the Aluminium downstream. This has led the world market to be in surplus with
“As COVID-19 unfolds, we continue to focus on adapting to the new life norm and keeping our people safe as we navigate together through this crisis,” Shaikh Daij Bin Salman Bin Daij Al Khalifa, the Chairman of Alba’s Board of Directors, said.
“Despite the challenging market conditions, we are unlocking our strength as we aim to close 2020 by meeting our Production Target of 1,540,000 metric tonnes.”
“Today, the world is going through radical transformation and the Aluminium industry is not an exception. Despite the odds, we have been able to maintain a stable performance by delivering on our commitments,” Ali Al Baqali, Alba’s Chief Executive Officer, said.
“In the face of this crisis, we choose to get better by capitalising on our safety culture and operational resilience which has led us to achieve more than 24 million safe working-hours without LTI as of to-date.”
