Qamco net profit rises 25% year-on-year to QR534mn in 9M-2025

28/10/2025 05:21 AST

Qatar Aluminum Manufacturing Company, a 50% joint venture (JV) partner in Qatar Aluminum Company (Qatalum), has reported a net profit of QR534mn for the nine-month period ended September 30, 2025, with improved earnings per share (EPS) of QR0.096 against QR0.077 a year-ago period.

The net earnings surged 25% year-on-year primarily driven by stronger revenues supported by improved selling prices and a marginal increase in sales volumes. A reduction in finance costs further contributed to the company's profitability.

Qamco's share of revenue from its JV rose, reflecting favorable prices. Additionally, its share of Ebitda (earnings before interest, taxes, depreciation and amortisation) improved by 11% on the back of "solid and stable" Ebitda margins (at 34%), highlighting its operational resilience and improved selling prices (+9%) and sales volume (+13%), which collectively offset the rise in operating costs, driven by higher alumina prices.

Additionally, Qamco realised savings in finance costs, stemming from debt refinancing and scheduled loan repayments at the joint venture level.

On the operational front, production volumes were up 1%, underpinned by stable efficiency and enhanced amperage at the JV operations.

As of September 30, 2025, Qamco maintained a strong financial position, underpinned by substantial cash and bank balances, including its proportionate share from the JV. These balances exceeded year-end 2024 levels, reflecting prudent financial stewardship across both Qamco and its JV.

This solid liquidity, combined with a reduced share of JV debt, enabled the company to distribute dividends for both the second half of 2024 and the first half of 2025, amounting to about QR279mn and QR240mn respectively.

Throughout January-September 2025, the aluminum market has shown signs of shifting from long-standing surplus conditions toward a more balanced, or potentially towards tighter supply-demand conditions. China's production growth, the dominant force for over a decade, has slowed due to policy constraints and capacity limits, while inventories globally have gradually declined; reducing the supply cushion that previously characterised the sector.

Moderate capacity growth and lower stock levels have created a more stable market backdrop, offering producers some relief after years of margin pressure, a Qamco spokesperson said.

Structural demand trends in the energy transition sector tied to electric vehicles and renewable energy continue to support the market, helping to sustain underlying consumption despite uneven industrial output across regions.

"At the same time, cost pressures, volatility in alumina and energy prices, coupled with softer global manufacturing indicators and ongoing geopolitical and trade uncertainties, continue to influence sentiment around aluminum prices throughout 2025," the spokesman added.

Gulf Times