REG - Aluminium Bahrain - Annual Financial Report

Aluminium Bahrain BSCAnnouncement

10/02/2022 13:45

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RNS Number : 3384B  Aluminium Bahrain B.S.C.  10 February 2022

 Media Release - Thursday 10 February 2022

 

Alba Discloses its Financial Results for the Fourth Quarter and Full-Year of
2021

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(http://www.rns-pdf.londonstockexchange.com/rns/3384B_1-2022-2-10.pdf)

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Q4 2021 and Full-Year 2021 Financial Performance

Aluminium Bahrain B.S.C. (Alba) (Ticker Code: ALBH), the world's largest
aluminium smelter w/o China, has reported a Profit of BD181.2 million
(US$481.9 million) for the fourth quarter of 2021, up by 466% Year-over-Year
(YoY) versus a Profit of BD32 million (US$85.1 million) for the same period in
2020. The Company reported Basic and Diluted Earnings per Share of fils 128
for Q4 2021 versus Basic and Diluted Earnings per Share of fils 23 for the
same period in 2020. The Total Comprehensive Income for Q4 2021 stood at BD183
million (US$486.7 million) versus Total Comprehensive Income for the fourth
quarter of 2020 of BD32.9 million (US$87.8 million) - up by 455% YoY. Gross
Profit for the fourth quarter of 2021 was BD215.5 million (US$573.1 million)
versus BD60.1 million (US$159.8 million) in Q4 2020 - up by 259% YoY.

For the Full-Year of 2021, Alba has reported a Profit of BD451.9 million
(US$1,202 million), up by 4,532% YoY, versus a Profit of BD9.7 million (US$26
million) for 2020. Alba reported Basic and Diluted Earnings per Share of fils
319 versus Basic and Diluted Earnings per Share of fils 7 in 2020. Alba's
Total Comprehensive Income for the Full-Year of 2021 was BD458.5 million
(US$1,219.4 million), up by 30,467% YoY, compared to a Total Comprehensive
Income of BD1.45 million (US$3.9 million) for 2020. Gross Profit for 2021 was
BD577 million (US$1,534.6 million) versus BD141 million (US$375 million) in
2020 - up by 309% YoY.

With regards to the Revenue in Q4 2021, Alba generated BD523.3 million
(US$1,391.8 million) versus BD278.8 million (US$741.5 million) in Q4 2020 - up
by 88% YoY. For the Full-Year of 2021, Revenue topped BD1,584.8 million
(US$4,214.9 million), up by 49% YoY, compared to BD1,061.4 million (US$2,822.9
million) for 2020.

Total Equity as at 31 December 2021 stood at BD1,503 million (US$3,997.3
million), up by 39% YoY, versus BD1,079.5 million (US$2,871 million) as at 31
December 2020. Alba's Total Assets as at 31 December 2021 were BD2,624.6
million (US$6,980.3 million) versus BD2,353.7 million (US$6,259.8 million) as
at 31 December 2020 - up by 11%.

Alba's Board of Directors have proposed to pay a final dividend of Fils 53.14
per share (excluding the treasury shares) totalling BD75.2 million (US$200
million) subject to the approvals of the Company's shareholders at the Annual
General Meeting which will be held in March 2022.

 

Alba's top-line was driven in by higher LME prices (44% YoY in Q4 2021 and 45%
YoY for the Full-Year of 2021) while the bottom-line for Q4 and Full-Year of
2021 was driven by higher top-line and partially impacted by higher Selling
and Distribution Expenses.

 

2021: Industry Highlights

Strong Market Demand Supported by V-Shape Economic Recovery

§ 2021: a golden year for Aluminium being the best performing metal out of
major LME base metals

§ Robust rebound in Global Demand supported by strong market recovery and
economic activity in key markets (+8% YoY)

§ Double-digit increase in World ex-China Consumption (+12% YoY) led by
Europe (+13% YoY) and North America (+13% YoY)

§ Middle East demand up by 10% YoY fuelled by higher consumption in UAE (+11%
YoY), Bahrain (+9% YoY) & KSA (+7% YoY)

§ Chinese consumption up by 5% YoY thanks to a good pick-up in industrial
activity

Strong Aluminium Fundamentals Support Supply Growth by 4% YoY

§ European smelting industry hit hard by escalating gas and power prices. 7
Aluminium producers have curtailed their supply since Oct'21 -> meek growth
of 1% YoY

§ China: a net importer of Aluminium [supply up by 5% YoY] --> which
helped to reduce metal surplus outside China

§ Middle East supply: a modest increase of 1% YoY (UAE up by 2% YoY &
Bahrain up by 1% YoY)

§ World market deficit widens by 2021-end with China (-1.1 million MT) and
w/o China (-1.2 million MT)

§ LME inventories remain low at ~0.9 million MT by end-2021 (versus ~1.3
million MT in 2020)

§ Aluminium prices break higher on supply constraints due to European power
market. LME-Cash averaged US$2,475/t - up by 45% YoY

 

 

 

 

2021: Alba Environment, Social and Governance (ESG) Highlights

§ Collaborated with a top-class consultant to develop a fully-fledged ESG
roadmap in line with Bahrain's Objectives towards 'Net Zero Emissions' by
2060.

§ A full fledged ESG Roadmap, approved by Alba's Board of Directors,
comprising 6 major priorities: Decarbonisation, Green Energy and Aluminium,
Circular Economy and Secondary Aluminium, Employee Welfare, Collaboration and
Partnership as well as Transparency, Communications and Due Diligence

§ Alba CEO received People First Leader Award in Oct'21 during the GCC GOV HR
Awarding Ceremony 2021

§ Launched 2(nd) plant-wide Environment, Social, and Governance (ESG)
Campaign 'Shaping Our Future' on 24 Oct'21; supported Bahrain's national
initiatives to combat climate change with 'A Tree for Employee' on 16 Nov'21

§ Appointed a new Acting ESG Manager to drive Alba's ESG transformation on 05
Dec'21

§ Released 2020 Sustainability Report with independent limited assurance on
compliance with the Global Reporting Initiative (GRI) Standards on 07 Dec'21

§ Commissioned Spent Pot Lining (SPL) Treatment Plant, an Environmental
Conservation Project, first-of-its-kind in the region on 12 Dec'21

§ Closed 2021 with more than 20 million safe working-hours without LTI

2021: Alba Major Operational Highlights

§ Closed 2021 with an all-time Production record of 1,561,222 metric tonnes
(MT) and higher Sales' volume of 1,550,857 despite logistics' challenges

§ Value Added Sales averaged 63% of the total shipments vs. 44% in 2020 [VAP
in MT: 977,582 up by 44% YoY]

§ Made in Bahrain & Branching-out to the World: Alba product-portfolio in
more than 50 countries

§ Launched new website to offer an up-close and user-friendly experience
after unveiling new Vision, Mission and Values in Jan'21

§ Promoted 607 employees in 2021, highest ever achieved in Alba's history,
based on Alba's Master Training Plan (initiated back in 2019), Skills Matrix
and Training & Development Programme (TDP) and Al Jisr Programme (launched
in 2020)

 

2022 Alba Priorities

§ Deliver on newly-launched ESG roadmap in line with Bahrain's objectives for
'Net Zero Emissions' by 2060

§ Evolve Towards Safety Excellence & Keep Alba's Human Capital Safe
Amidst COVID-19

§ Meet 2022 Production Target of 1,560,000 metric tonnes & Deliver on AL
HASSALAH Savings' Target of US$100 Million by 2022-end

§ Screen Potential Upstream Opportunities to Secure 1/3 Alumina Requirements
& Continue Dialogue with Hangzhou Jinjiang Group Co. Ltd

§ Capitalise on Aluminium Stewardship Initiative and Ecovadis Certifications
to Penetrate New Markets & Increase VAP Sales to 70%

§ Progress with PS5 Block 4 to further boost efficiency and Solar Farm

§ Engage with consultant to conduct pre-feasibility study for Line 7 smelter

Commenting on Alba's exceptional financial performance for the full year of
2021, the Chairman of Alba's Board of Directors, Shaikh Daij Bin Salman Bin
Daij Al Khalifa stated:

2021 marked our Golden Jubilee of Operations and Alba's best financial
performance ever recorded in its 5 decades.

-       Our Production topped 1,561,222 metric tonnes versus 2021 Target
of 1,550,000 metric tonnes

-       EBITDA entered US$1.636 billion-Club league for Full Year of
2021

-       EBITDA Margin, the highest ever achieved in Alba's history, at
43.5% in Q4 2021 and 38.8% for Full Year of 2021

-       Net Profit joins the three-comma club by setting an all-time
precedent of US$1.2 billion for Full Year of 2021

This stellar performance, backed by our operational efficiency thanks to Line
6 Expansion Project, was made possible thanks to each and everyone in Alba. I
look forward to capitalising on the strong momentum we have established in
2021 to navigate 2022 and set new benchmarks in all aspects including ESG.

Adding further, Alba's Chief Executive Officer, Ali Al Baqali said:

Our strong finish in 2021 reflect our disciplined approach to go the extra
mile and exceed our own expectations despite the unprecedented challenges we
faced with COVID-19 and logistics. This better-than-anticipated top line
performance combined with our lean cost mindset allowed us to give back to our
shareholders and reduce our overall debt position.

What made 2021 extraordinary is that our Safety performance was behind our
all-time productivity - achieving 0 LTIs and more than 20 million safe working
hours."

Alba Management will hold a conference call on Monday 14 February 2022 at 3 PM
Bahrain Time to discuss its financial and operational performance for Q4 and
Full-Year of 2021, outline the Company's priorities for 2022 as well as
provide an update on the current market conditions and outlook for 2022.

ENDS

Photo Caption

Shaikh Daij bin Salman bin Daij Al Khalifa, Alba's Chairman of the Board of
Directors

Ali Al Baqali, Alba's Chief Executive Officer

 

About Aluminium Bahrain B.S.C. (Alba)

[Ticker: ALBH]

 

Starting as a 120,000 tonnes per annum smelter in 1971, Alba, today, is the
world's largest aluminium smelter ex-China with a production of more than
1.561 million metric tonnes per annum (2021). Its diverse product portfolio of
Standard and Value-Added Products (VAP)s are exported to more than 240 global
customers through its sales offices in Europe (Zurich), Asia (Hong Kong &
Singapore) and subsidiary office in the U.S. Alba is dual listed on Bahrain
Bourse and London Stock Exchange and its shareholders are Bahrain Mumtalakat
Holding Company B.S.C. © (69.38%), SABIC Industrial Investments Company
(SIIC) (20.62%) and General Public (10%).

 Over the last five decades, Alba has been a major contributor to the social,
industrial, and economic development of the Kingdom of Bahrain. The Company is
at the heart of a thriving Bahrain's aluminium sector, which accounts for
approximately 12% of the country's GDP. Renowned for being an employer of
choice, Alba is a model in Employee Training and Development and employs over
3,100 people across its operations (2021), of which 84% are Bahraini
nationals. It is noteworthy that in 2021, Alba achieved more than 581,000
training- hours despite the challenges of COVID-19.

Alba is recognised as one of the top industrial companies in the world with
high standards in Environment practices, Social contribution and Corporate
Governance. Over 50 years, the Company has invested into projects that had a
positive impact on the society in which it operates. More recently, Alba's
US$37.5 million zero-waste Spent Pot Lining Treatment Plant, the upcoming
5-plus MW Solar Farm Project and strategic role in the future Aluminium
Downstream Park are a testimony of Alba's Sustainability Roadmap that will
meet the goals of Bahrain's Economic Vision 2030 as well as the Net Zero
Carbon targets led by HRH the Crown Prince and Prime Minister of Bahrain in
COP26 summit. In addition, globally-recognised certifications such as ISO
9001, ISO 14001, ISO 27001, ISO 45001, IATF 16949:2016 and ASI Performance
Standard Certification and Ecovadis attest to Alba's actions to produce
aluminium responsibly and sustainably.

Safety of its employees and contractors' workforce remains Alba's
top priority. Over the years, the Company has maintained an excellent track
record in Safety and Health for which it has won prestigious international
awards such as the RoSPA Award 2021 (8 years in a row) and International
Safety Award with Merit from British Safety Council in 2020. Alba stayed
strong on its journey of Safety Excellence by topping more than 20 million
safe working-hours without any Lost Time Injury (LTI) by end of 2021.

Alba has also been recognised internationally for its strong values and
operating excellence, with the most recent ones being top ESG performer in
Bahrain by ESG Invest; Safeguard Label from Bureau Veritas; and Best Corporate
Governance Award by Ethical Boardroom. For more information on Alba, please
visit www.albasmelter.com (http://www.albasmelter.com)

Alba External Grievance Mechanism

 

Alba's External Grievance Mechanism receives and facilitates the resolution of
any affected communities' concerns and grievances about Alba's Environment and
Social (E&S) performance. External grievances about Alba's E&S
performance can be logged via the Alba Integrity Line
(https://www.albasmelter.com/en/category/code-of-conduct) - an independently
operated confidential reporting hotline in multiple languages - via a
toll-free phone system or via the intranet 24 hours a day.

Alba Response to COVID-19 Pandemic

 

Alba's response strategy to COVID-19 was initiated back to January 2020 in
line with the guidelines of Bahrain National Taskforce for Combating
Coronavirus (COVID-19). The Company was able to maintain safe operations
throughout 2021 thanks to its nimble workforce - employees and contractors'
personnel.

 

 

 

For further details, please contact:

Eline Hilal

Director, Investor Relations, Insurance & Corporate Secretary

Investor Relations Department

Tel:         (973) 1783 5100

E-mail:   eline.hilal@alba.com.bh (mailto:eline.hilal@alba.com.bh)

Website: www.albasmelter.com (http://www.albasmelter.com)

 

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