REG - Aluminium Bahrain - Alba Reports Q2 & H1 2014 Results <Origin Href="QuoteRef">ALBH.BH</Origin>

Aluminium Bahrain BSCAnnouncement

06/09/2014 20:41

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140728:nRSb4420Na


RNS Number : 4420N
Aluminium Bahrain B.S.C.
27 July 2014 
 
Media Release - July 27, 2014 
 
Alba Reports Q2 & H1 2014 Results 
 
·     Bahrain Cabinet approves Line 6 Gas allocation 
 
·     Interim Dividend of BD 16.9 million (US$ 45 million) proposed by the
Board 
 
·     Alba achieves 4 million hours without a Lost Time Injury 
 
Q2 2014 Industry Highlights 
 
·    Global aluminium demand remains strong with world consumption up by 6.9%
year-on-year (YoY). Asian demand was driven by China (+10% YoY) with increased
infrastructure investments and higher transportation demand. North America
demand up by 4.5% YoY thanks to a strong boost in automotive build rates and
construction sector. MENA consumption remains healthy supported by large
infrastructure spending in Saudi Arabia and Qatar; Europe consumption up by 2%
YoY driven by German automotive production 
 
·    World market production rose by 6.4% YoY as compared to Q2 2013 
 
·    Lower LME price and higher energy cost continue to haunt western
producers leading to further closures in production 
 
·    Physical premiums on upward march supported by a deficit in the world
excluding China 
 
·    The LME cash average was at US$ 1,798 metric tonnes (mt) in Q2 2014
compared to US$ 1,834 mt for the same period last year 
 
H1 2014 Alba Highlights 
 
·    Continued focus on Operational Excellence 
 
·    Continuous emphasis on Safety with the launch of Summer Safety "BLIZZARD"
Campaign and the achievement of 4 million hours without Lost Time Injury
(LTI) 
 
·    Significant uplift in physical premiums (32% YoY) thanks to a solid
physical demand 
 
·    Alba production figures up by 2.5% YoY to reach 464,012 metric tonnes in
the first half of 2014 versus 452,727 mt in H1 2013 
 
·    Sales of Value-Added products represented 65% in H1 2014 of total
shipments - stable performance versus H1 2013 
 
Q2 & H1 2014 Financial Results 
 
Alba's Total Sales for the first six months of 2014 were US$ 1.001 billion (BD
376.4 million) versus US$ 1.018 billion (BD 382.6 million) in H1 2013, on the
back of higher premium partially offset by lower LME prices. Sales for the
second quarter of 2014 reached US$ 515 million (BD 193.6 million) compared to
US$ 520 million (BD 195.5 million) for the same period in 2013. 
 
The company posted a Net Income of US$ 86 million (BD 32.3 million) for the
first half of 2014, versus US$ 163 million (BD 61.2 million). Net Income for
the second quarter of 2014 stood at 
 
US$ 41 million (BD 15.2 million) compared to US$55 million (BD 20.7 million)
driven by low LME prices. 
 
The Board has recommended an Interim Cash Dividend of 12 Fils per share, which
is US$ 45 million (BD 16.9 million). 
 
2014 Alba Priorities 
 
·    Continuous focus on Safety and training initiatives 
 
·    Deliver on Project Titan 
 
·    Sustainable value-added products and leverage physical premiums 
 
·    Increase creep up capacity with minimum capital investment 
 
·     Finalise gas contract structure 
 
Aluminium Bahrain B.S.C. (Alba) announced the release of its second quarter
and first half of 2014 results on Sunday, June 27, 2014. 
 
Commenting on Q2 & H1 2014 results, Alba's Chief Executive, Tim Murray said: 
 
"Alba was able to deliver another strong operational performance and improve
safety by achieving 4 million hours without an LTI. We were able to increase
cash flow year over year despite lower LME by accelerating the savings on
project Titan." 
 
The Chairman of Alba's Board of Directors, Daij Bin Salman Bin Daij Al Khalifa
added: 
 
"Alba continues to improve its underlining performance and achieve sustained
earnings amid tough LME market conditions. I would like to thank all the
employees of Alba for the continued focus on Safety." 
 
Alba's Chief Executive Officer, Tim Murray, Chief Operations Officer, Isa
Al-Ansari and Investor Relations Manager, Eline Hilal will be will be holding
a conference call on Monday July 28 to discuss Alba's performance for the
second quarter & first half 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/4420N_-2014-7-27.pdf 
 
http://www.rns-pdf.londonstockexchange.com/rns/4420N_1-2014-7-27.pdf 
 
ENDS 
 
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 890,000 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
Investment Company (20.62%) and the General Public (10%). 
 
About Arabal 
 
The Arab International Aluminium Conference (ARABAL) is the premium trade
event for the Middle East's aluminium industry and the only conference in the
world attended by every single primary aluminium manufacturer in the region.
Therefore, it is the conference of choice for anyone interested in the Middle
East aluminium industry. 
 
ARABAL first began in 1983 with Kuwait Aluminium Co. bringing together the
leading figures in Middle East Aluminium to strengthen ties and discuss the
issues of the day to provide an overview about the entire aluminium industry.
Over the past 29 years, it has become an event of international repute,
bringing together leaders from the aluminium industry across the world to
attend, speak, and exhibit, at the event. 
 
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 
 
Follow us on: 
 
http://www.twitter.com/Alba4World 
 
http://www.facebook.com/Alba4World 
 
http://www.instagram.com/Alba4World 
 
http://www.linkedin.com/company/aluminium-bahrain 
 
http://www.youtube.com/Alba4World 
 
This information is provided by RNS
The company news service from the London Stock Exchange