Alba posts $48.2m Q1 profit, production costs impact

15/05/2025 02:11 AST

Aluminium Bahrain (Alba), the world's largest aluminium smelter on one site, has reported a profit of BD18.1 million ($48.2 million) for the first quarter of 2025, a drop of 25.9% year-over-year (YoY), versus a profit of BD24.5 million ($65 million) for the same period in 2024.

The company reported basic and diluted earnings per share of fils 13 for Q1 2025 versus fils 17 for the same period in 2024.

Total comprehensive income for Q1 2025 stood at BD16.8 million versus BD27.7 million for the same period in 2024 - a drop of 39.4% YoY. Gross profit for Q1 2025 was BD50.8 million versus BD 57.3 million for the same period in 2024 - down by 11.3% YoY.

With regards to the revenue from contracts with customers, Alba generated BD408.9 million versus BD334.6 million in Q1 2024 - up by 22.2% YoY.

Total equity as of 31 March 2025 stood at BD1,902.7 million, down by 1.1%, versus BD1,923.9 million, as of 31 December 2024. Alba's total assets as of 31 March 2025 were BD2,706.9 million versus BD2,673.4 million as of 31 December 2024 - up by 1.25%.

Higher LME price (+20% YoY) and higher premiums (+38% YoY) drove strong top-line performance, increased production costs significantly compressed EBITDA resulting in lower bottom-line.

Alba's Operational Highlights
o Despite market challenges, sales volume reached a healthy 374,809 MT, up by 3% YoY.
o Net finished production dipped slightly by 2% YoY to reach 396,866 MT.
o Value Added Sales (VAP) averaged 71% of total shipments, marking an increase of 5% YoY [VAP: 265,657 MT in Q1'25 versus 252,772 MT in Q1'24].
o Achieved savings for e-Al Hassalah at US$30.9 million against 2025 Target of US$60 million.

LME Price & Premiums
o LME Price averaged $2,629/t in Q1 2025 (+20% YoY) and was supported by low global inventories of 459,000 MT (down by 17% YoY) and modest supply growth. However, towards the end of Q1, LME prices started to decline given changes in trade policies.
o Premiums: Following the implementation of tariffs in the US, regional premiums surged by 77% YoY. DDP Rotterdam and MJP premiums up by 17% and 153% YoY respectively mainly due to depletion of inventories and geopolitical factors.

Commenting on the Company's performance for the first quarter of 2025, the Chairman of Alba's Board of Directors, Khalid Al Rumaihi stated: "Alba's Q1 2025 results underscore the fundamental strength and operational efficiency of our business. "While our reported profit reflects the significant impact of higher alumina prices, it's important to recognise that had these prices remained at previous levels, Alba would have undoubtedly achieved an unparalleled financial performance, demonstrating our inherent earnings potential."

Alba's Chief Executive Officer Ali Al Baqali, added: "Despite the prevailing global geopolitical tensions, Q1 2025 was a landmark period for Alba marked by many firsts: we recorded the highest sales volume, achieved a record Value Added Sales percentage and most importantly, delivered our best safety performance ever in the Company's history.

"These firsts are a direct result of the commitment and operational excellence exhibited by the entire Alba team."

Other highlights of the quarter:

Alba celebrates ESG achievements

? Safety First. Safety Always

o Alba wins six National Safety Council Awards for 2025.
o Honoured with Prestigious RoSPA Life President Award for Unparalleled Safety Excellence.
o Launched plant-wide Safety and Health Campaign 'Be an Albawee in Ramadan'.

? Empowering People
o 56 national employees completed Alba's 'Al Jisr' training & development programme.
o Promoted 3 Bahraini talent to key managerial positions.
o Celebrated promotion of 2,082 Bahraini employees over the past 5 years and 87% Bahrainisation rate.
o 15 exceptional employees, including 7 women, were recognised with the 'Inspirational Employee of the Year' Award.

? Sustainability & Environmental Stewardship
o Embarked on a pilot programme for an electric, battery-powered Aluminium Fluoride (AlF3) feeding vehicle in potlines.
o Joined Sea Cargo Charter as its Newest Signatory, Reinforcing Sustainable Shipping Commitment.
o Recognised top-performing contracting companies for their top performance in Safety and well-being of workers in Alba.

? Community Impact
o Alba joined Tamkeen's Open Innovation Program to obtain innovative solutions from Bahraini startups and SMEs - first company in Bahrain to join the program.

Alba: Safe, Sustainable, Successful
? Leading the Way: Safety First, Sustainability Always

o Aligned with Bahrain's 2060 vision of net-zero emissions, Alba embeds sustainability from raw material sourcing to product delivery, minimising environmental footprint.

? Operational Excellence and Growth
o Exceed 2024 Net Finished Production of 1,622,261 MT.
o Achieve e-Al Hassalah 2025 Target of $60 million, progressing towards 2026 Target of $150 million.

? Capacity Expansion and Efficiency Enhancement
o Leverage its industry-leading certifications such as Aluminium Stewardship Initiative (ASI), EcoVadis and Low-Carbon Aluminium EternAlTM to penetrate new markets & boost Value Added Sales (VAP) sales.
o Complete solar farm (+6 MW) to enhance green energy utilisation.
o Establish Alba Daiki Sustainable Solutions (ADSS) for aluminium dross processing by September 2026.
o Complete feasibility study for the New Replacement Line which will replace Reduction Lines 1-3.

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