Bahrain's Alba sees Q2 net profits slump

Aluminium Bahrain says performance impacted by lower prices and higher gas costs
Bahrain's Alba sees Q2 net profits slump
By Andy Sambidge
Sun 29 Jul 2012 05:21 PM

Aluminium Bahrain on Sunday posted net profits of $95m for the second quarter of 2012, down from $185m in the same period last year.

The company,  which owns the world's fourth-largest aluminium smelter, said its performance had been impacted by lower London Metal Exchange prices and higher gas costs.

Aluminium prices on the London Metal Exchange dipped close to $600 a tonne when compared with the same period last year, according to the company.

Alba’s chairman, Mahmood Hashim Al Kooheji, said in a statement that aluminium demand was still healthy despite global economic uncertainty.

He added that the company saw an increase in production during Q2 and additional recurrent savings of $12m.

Alba said world consumption for aluminium products surged 3.2 percent compared to Q2 2011 while world market production rose by 2.2 percent.

The Bahrain firm also said it saw production rise by 1.7 percent in the second quarter with sales remaining stable at $523m "thanks to ongoing operational excellence initiatives".

Alba said its priorities included the launch of bankable feasibility studies to expand its sixth line of production before the year-end.

Alba's chief executive, Laurent Schmitt, said: "Without LME & gas impact, Alba was able to maintain its intrinsic value.

"We remain confident that Alba will maintain its competitive position for the remainder of 2012 through an ongoing focus on Continuous Improvement Programmes as well as commitment to Operational Efficiency initiatives."

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