REG - Aluminium Bahrain - 1st Quarter 2016 Results <Origin Href="QuoteRef">ALBH.BH</Origin>

Aluminium Bahrain BSCAnnouncement

03/05/2016 07:09

RNS Number : 9580W
Aluminium Bahrain B.S.C.
03 May 2016
FOR IMMEDIATE RELEASE 
MANAMA (ALBH)
Aluminium Bahrain B.S.C. (Alba) presents its financial results as per the International Financial Reporting Standards (IFRS) accounting rules. All investors and reporters are asked to read Albas Q1 2016 (Reviewed) Financial Statements posted at www.albasmelter.com. 
Albas results for Q1 2016 are summarised below
Alba Reports Q1 2016 Results 
Q1 2016 Industry Highlights
 World consumption up by 5% YoY while world production up by 1% YoY
 Q1 2016 cash-average was $1,515/t down by 16% YoY
 Significant drop in global physical premiums 
 LME inventories at 2.8 million metrictonnes (mt) in March 
Q1 2016 Alba Highlights
 Continuous improvement in safety performance
 Sales figures up by 1.4% YoY (231,538 mt) 
 Value-Added Sales averaged 52% of total shipments
 Launch of Project Titan - Phase II with the aim to streamline cash-cost by US$100 per mt and boost Alba's production capacity to reach 1 million mt per annum by end of 2017
Q1 2016 Financial Results
The Company's top-line and earnings performance for the first quarter of 2016 were driven primarily by the collapse of all-in-aluminium prices. 
Alba reported a Total Sales of BD156.5 million (US$ 416 million) versus BD 206.6 million (US$ 549 million) for the first quarter of 2015, a drop of 24% YoY; while Net Income stood at BD4.2 million (US$ 11 million) as compared to BD 37.2 million (US$ 99 million) for the same period in 2015. 
2016 Alba Priorities
 Continuous Focus on Safety Initiatives & Talent Management 
 Deliver on Project Titan - Phase II 
 Line 6 in progress: Bechtel appointed as EPCM Contractor 
Aluminium Bahrain B.S.C. (Alba) announced the release of its first quarter of 2016 results on Monday, May 2, 2016.
Commenting on Q1 2016 Results, the Chairman of Alba's Board of Directors, Daij Bin Salman Bin Daij Al Khalifa: 
"Despite weak market sentiment coupled with low LME prices, Alba still recorded positive Net Income.
Line 6 continues to gain momentum and we look forward to work with Bechtel who got recently appointed as EPCM contractor."
Alba's Chief Executive Officer, Tim Murray added:
"Alba was able to sustain its intrinsic financial performance in the face of very difficult market conditions thanks to the support of our dedicated workforce.
We will continue to drive operational performance and '"Doing more than necessary"' to bolster Alba's performance despite the challenging market conditions."
Alba's Management will be holding a conference call on Tuesday, May 3, 2016 to discuss Alba's financial performance for the first quarter of 2016 as well as outline the company's priorities for the remainder of the year.
ENDS
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Photo Caption:
Picture 1: Alba's Chairman, Daij Bin Salman Bin Daij Al Khalifa 
Picture 2: Alba's Chief Executive, Tim Murray 
About Alba:
Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 960,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium. 
Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company's shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).
About Line 6 Expansion Project:
Line 6 Expansion Project will make Alba the world's largest single-site aluminium smelter. Expected to begin production by early 2019, this Project will boost the per-annum production by 540,000 metric tonnes, bringing the total production capacity of Alba to around 1.5 million metric tonnes per year. 
With a CAPEX of US$ 3.5 billion, the Line 6 Expansion Project is one of the largest brownfield developments in the region and involves the construction of a sixth pot line, a 1,350 MW power station and other industrial services. 
Bechtel is the EPCM contractor for the Line 6 Expansion Project, which will be utilising EGA's proprietary DX+ Ultra Technology. J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors of this Project.
The Bankable Feasibility Study was completed by Bechtel in December 2014. In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project. 
The Line 6 Expansion Project will be a significant economic boost for the Kingdom of Bahrain as it will be creating many co-investment opportunities through local and foreign aluminium investments as well as significant employment opportunities for the nationals. 
For further details, please contact: 
Eline Hilal
Manager - Investor Relations, Public Relations &
Corporate Secretary 
Investor Relations & Public Relations Department
Tel: (973) 1783 5100 (direct)
Fax: (973) 1783 3822 
E-mail:eline.hilal@alba.com.bh
Website: www.albasmelter.com.bh
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