REG - Aluminium Bahrain - Alba Q3 2014 Results Press Release <Origin Href="QuoteRef">ALBH.BH</Origin>

Aluminium Bahrain BSCAnnouncement

12/11/2014 08:00

RNS Number : 7799W
Aluminium Bahrain B.S.C.
12 November 2014
Media Release - November 11, 2014
Alba Q3 Results surge ahead of expectations

 Higher Net income driven by strong operational performance and higher LME prices
 Alba wins the 2014 RoSPA Gold Award for Safety
 Strong Marketing performance
Q3 2014 Industry Highlights
 World consumption up by 8%year-on-year (YoY) while world production up by 6%YoY. Asian demand up by 11% YoY propelled mainly by a robust growth in China (+14% YoY) on the back of government stimulus and infrastructure investment. Consumption in North America remains strong (over 4.5% YoY) as Ford gears to switch production of F-150 truck with aluminium. MENA demand is relatively healthy supported by large infrastructure spending while Europe consumption remains stable.
 LME inventories at 4.6 million metric tonnes in September
 World market is short-supplied (-129 Kt with China & -204 Kt without)
 Physical premiums continue to rise across the world 
 The LME cash average was at US$ 1,989 metric tonnes (mt) with LME ranging between $1,838 mt on July 1 and $2,114 mt on August 29
Q3 2014 Alba Highlights
 Alba wins the 2014 RoSPA Gold Award for Safety
 Alba was able to increase its sales (metric tonnes) by 2.3% YoY while production was up by 1.5% YoY on the back of sustained operational performance
 Sales of Value-Added products represented 67% in Q3 2014 of total shipments versus 65% in Q3 2013
 Physical Premiums on upward trend (+32% YoY) thanks to a solid physical demand
Q3 & 9 Months 2014 Financial Results
Alba's Total Sales for the third quarter of 2014 were US$ 593 million (BD 223.2 million) compared to US$ 488 million (BD 183.3 million) for the same period in 2013.

Total Sales for the nine months of 2014 totalled US$ 1.6 billion (BD 599.6 million) versus US$ 1.5 billion (BD 565.9 million) in Q3 2013 on the back of higher LME prices and physical premiums.

Net Income for the third quarter of 2014 jumped to US$ 78 million (BD 29.5 million) compared to only US$ 13 million (BD 4.9 million) for the same period of 2013. The large increase in third quarter was due to strong operational performance on the back of higher metal prices.

The company posted a Net Income of US$ 165 million (BD 61.9 million) for the nine months of 2014, versus US$ 176 million (BD 66 million) due to lower unrealised derivative gains in 2014.

The Board recommended an Interim Cash Dividend of 12 Fils per share, which is US$ 45 million (BD 16.9 million) - paid on September 1, 2014.

Q3 2014 Alba Priorities
 Continuous focus on Safety and Talent Management 
 Deliver on Project Titan 
 Sustainable value-added products and leverage physical premiums 
 Increase creep-up capacity with minimal capital investment 
 Finalise gas contract and obtain necessary approvals as we gear for Line 6 expansion project
Aluminium Bahrain B.S.C. (Alba) announced the release of its third quarter of 2014 results on Wednesday, November 11, 2014.
Commenting on Q3 results, Alba's Chief Executive, Tim Murray said:
"Alba's sound financial performance in the third quarter of 2014 was driven by strong operational performance and gains from the Marketing organisation."
The Chairman of Alba's Board of Directors, Sh. Daij Bin Salman Bin Daij Al Khalifa added:
"Once again, Alba was able to deliver exceptional results. 
As we head into the end of the year, the company is targeting to exceed the record production achieved in 2013." 
Alba's Executive Management will be holding a conference call on Thursday November 13, 2014 to discuss Alba's performance for the third quarter of 2014 as well as outline the company's priorities for the remainder of this year.
Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/7799W_-2014-11-12.pdf
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For further details, please contact:
Eline Hilal
Investor Relations Manager
IR Department
Tel: (973) 1783 5100 
Fax: (973) 1783 3822
E-mail:eline.hilal@alba.com.bh
Website: www.albasmelter.com.bh
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