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Mon 2 May 2016 06:13 PM

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Bahrain's Alba cites collapse in aluminium prices as Q1 profit falls 89%

Aluminium Bahrain's net income for three months to March 31 totalled $11.2m

Bahrain's Alba cites collapse in aluminium prices as Q1 profit falls 89%

Aluminium Bahrain (Alba), owner of one of the world's largest aluminium smelters, reported a 88.6 percent fall in first-quarter net profit on Monday as a result of a collapse in aluminium prices.

Alba's net income for the three months to Mar. 31 was 4.2 million dinars ($11.22 million) it said in a statement. This compares with a profit of 37.2 million dinars in the prior-year period.

Net income included extraordinary non-recurring items amounting to 54,263 dinars for the first quarter, compared with 396,981 dinars the previous year, it said without elaborating.

Alba in February cut its dividend for 2015 to free up cash for its expansion project, expected to cost $3.5 billion and raise its annual output to 1.45 million tonnes.

The firm appointed Bechtel as the contractor for the Line 6 expansion in April.

Alba's chief executive said in November it would reach its target to cut cash costs by $150 per tonne by January 2016, although the firm was looking to make further savings.

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