REG - Aluminium Bahrain - Half-year Report

Aluminium Bahrain BSCAnnouncement

05/08/2025 13:45

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RNS Number : 0837U  Aluminium Bahrain B.S.C.  05 August 2025

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Media Release - Tuesday 05 August 2025

 

 

Alba Discloses its Financial Results for the Second Quarter and H1 of 2025

Q2 & H1 2025 Financial Performance

Manama, Bahrain - [05 August 2025]: Aluminium Bahrain B.S.C. (Alba) (Ticker
Code: ALBH), the world's largest aluminium smelter on one site, has reported a
Profit of BD24.6 million (US$65.3 million) for the second quarter of 2025,
down by 64% Year-over-Year (YoY), versus a Profit of BD68.5 million (US$182.2
million) for the same period in 2024. The Company reported Basic and Diluted
Earnings per Share of fils 17 for Q2 2025 versus Basic and Diluted Earnings
per Share of fils 48 in Q2 2024. The Total Comprehensive Income for Q2 2025
stood at BD21.9 million (US$58.1 million) versus Total Comprehensive Income
for the second quarter of 2024 of BD66.7 million (US$177.4 million) - down by
67% YoY. Gross Profit for Q2 2025 was BD47 million (US$125.1 million) versus
BD102 million (US$271.2 million) for the same period in 2024 - down by 54%
YoY. As for Revenue from contracts with customers in Q2 2025, Alba generated
BD434 million (US$1,154.4 million) versus BD407 million (US$1,082.3 million)
in Q2 2024 - up by 7% YoY.

 

For the First Half of 2025, Alba has reported a Profit of BD42.7 million
(US$113.5 million), down by 54% YoY versus a Profit of BD93 million (US$247.3
million) for the same period in 2024. The Company reported Basic and Diluted
Earnings per Share of fils 30 for H1 2025 versus Basic and Diluted Earnings
per Share of fils 66 for the same period in 2024. Alba's Total Comprehensive
Income for H1 2025 was BD38.7 million (US$102.8 million), down by 59% YoY,
compared to a Total Comprehensive Income of BD94.4 million (US$251 million) in
H1 2024. Gross Profit for the First Half of 2025 was BD97.8 million (US$260.2
million) versus BD159.2 million (US$423.5 million) in H1 2024 - down by 39%
YoY. Alba generated in H1 2025 Revenue from contracts with customers of BD843
million (US$2,242 million) versus BD741.5 million (US$1,972.1 million) in H1
2024 - up by 14% YoY.

 

Total Equity as of 30 June 2025 stood at BD1,924.4 million (US$5,118.2
million), up by 0.03%, versus BD1,923.9 million (US$5,116.9 million) as of 31
December 2024. Alba's Total Assets as of 30 June 2025 were BD2,657.9 million
(US$7,069 million) versus BD2,673.4 million (US$7,110 million) as of 31
December 2024 - down by 0.6%.

 

The Board of Directors of Aluminium Bahrain B.S.C. (Alba) resolved during the
Board e-meeting on Tuesday 05 August 2025, to recommend the distribution of
Interim Dividend as at 30 June 2025 to the shareholders whose names are
registered on the Company's register on the Record Date. The cash interim
dividend is 10.55% of the share nominal value, equivalent to Fils 10.55 per
share amounting to BD14,932,765 (c.US$40 million).

 

 

Market Fundamentals [Based on Market Intelligence]

Global Market Demand (+3%YoY)

 

§ Global Economic Landscape experienced a notable slowdown with growth rates
lower than in previous years. Tariffs remain a major threat to global demand.
While global trade war has de-escalated since its peak in early April, tariffs
persist, and only two major US trade deals with the UK and China have been
announced. Tensions with key US partners haven't fully eased.

§ China's Q2 GDP exceeded expectations, driven by strong investment and
steady exports. However, weak domestic demand, ongoing property issues, and
deflation remain concerns. While recent policies aim to stabilise the economy,
more stimulus is likely needed. These dynamics contributed to a 4% YoY rise in
demand from China.

§ North America continues to face tariff uncertainty, which is preventing a
sustained improvement in demand; consumption is down by 1% year-on-year (YoY).

§ Europe saw lower consumption (-2% YoY) due to continued high energy costs
and a slowdown in the automotive industries.

§ Middle East demand dropped by 4% YoY, primarily driven by lower consumption
in Bahrain (-10% YoY) and UAE (-5% YoY).

 

Global Market Supply (+2%)

§ Global Aluminium Supply Growth was limited in Q2 with only marginal
increases from smelter restarts and expansions.

§ China's supply rose by a modest 2% YoY due to limited capacity expansion.

§ Middle East supply saw a mere 1% YoY increase.

§ Europe's overall production remained flat.

§ North America: Production contracted by 3% YoY primarily due to a 2% YoY
decline from Canadian smelters.

§ Market Balance: Since Chinese production is growing at a slower pace than
consumption (as China adheres to its 45 million tonnes annual target), the
global market is showing a deficit of -531,000 MT when including China and a
deficit of -175,000 MT when excluding China.

 

Aluminium Market Pricing & Inventories

§ LME Price averaged US$2,447/t in Q2 2025 (-3% YoY). Prices initially dipped
in April following the announcement of reciprocal tariffs but regained
momentum throughout the quarter. Despite this recovery, prices remain
relatively low, reflecting ongoing market volatility.

§ LME Inventories are down by a significant 66% YoY to 349,000 MT, the lowest
inventory level since early October 2022.

 

Alba's Q2 Operational Highlights

§ Despite market challenges, sales volume topped a healthy 411,007 MT, up by
3.4% YoY. Net Finished Production remained flat at 402,912 MT.

§ Value Added Sales (VAP) averaged 76% of total shipments, marking an
increase of 9% YoY [VAP: 314,390 MT in Q2'25 versus 288,312 MT in Q2'24].

 

§ Strategic Initiatives

o  Achieved savings for the e-Al Hassalah at US$59.4 million against 2025
Target of US$60 million.

o  Expanded EternAl(TM) Low-Carbon Product Line with launch of 'EternAl-AC',
a new product series incorporating verified in House Carbon Offsets, as well
as added EternAl-20 and EternAl-50 to its low-carbon aluminium portfolio.

o  1(st) Middle East smelter to adopt AI-Powered Seeq platform.

o  Successfully migrated to RISE with SAP Private Edition.

 

Trade Turbulence Casts Shadow Over Short-Term Aluminium Market Outlook [Based
on Market Intelligence]

o  Market Outlook: Market uncertainty persists, with recent LME gains
primarily driven by a weaker USD.

o  Demand Outlook: While tariffs continue to drive near-term volatility, the
broader outlook for aluminum demand remains robust.

o  Supply Conditions: Modest growth in Chinese aluminium output is expected
due to smelter restarts and ramp-ups. Production outside China is also likely
to increase with capacity expansions and restarts.

o  Premium Outlook: The MJP premium for Q3 is forecasted at US$108/t, a
projected drop of US$74/t from Q2. This expected decline reflects ongoing weak
demand in Japan and increased primary aluminium supply in the Asian market.
European premiums may also soften due to anticipated redirection of metal
originally bound for the U.S. Meanwhile, the U.S. Midwest premium has risen
significantly following the Section 232 tariff increase and is expected to
climb further if the tariffs remain in effect.

o  LME Price Forecast: Near-term LME prices are projected to range between
US$2,300/t and US$2,450/t.

Alba 2025 Priorities

§ Safety First, Sustainability Always: Aligned with Bahrain's objective of
net-zero emissions by 2060, Alba embeds sustainability principles in all
operations, minimising environmental impact from raw material sourcing to
product delivery.

§ Operational Excellence and Growth: Exceed 2024 Net Finished Production of
1,622,261 MT and achieve e-Al Hassalah 2025 Target of US$60 million (versus
2026 Target of US$150 million).

§ Capacity Expansion and Efficiency Enhancement

o  Leverage its industry-leading certifications such as Aluminium Stewardship
Initiative (ASI), EcoVadis and Low-Carbon Aluminium EternAl(TM) to penetrate
new markets & boost Value Added Sales (VAP) sales.

o  Establish Alba Daiki Sustainable Solutions (ADSS) for aluminium dross
processing by September 2026.

o  Complete Feasibility Study for the New Replacement Line which will replace
Reduction Lines 1-3.

Commenting on the Company's performance for the second quarter of 2025, the
Chairman of Alba's Board of Directors, Khalid Al Rumaihi stated: "Amidst
global market headwinds, Alba stands resilient and focused. While our
profitability has been tempered by external pressures, the continued growth in
revenue and the remarkable rise in Value Added Sales to 76% reflect the
strength of our vision and the agility of our operations.

The profitability gap compared to Q2 2024 is largely attributed to higher
landed alumina prices in this period; without that distortion, our performance
would've exceeded last year's."

Alba's Chief Executive Officer, Ali Al Baqali, added: "Behind every number is
the unwavering dedication of our people. In the face of market challenges,
Alba has delivered good results driven by a culture that puts safety first and
empowers excellence. Achieving 38 million safe working hours without LTI is a
testament to this commitment. We are proud of our workforce and confident in
our ability to navigate the road ahead, together and safely."

Alba Management will hold a conference call on Wednesday 06 August 2025 at
12:30 PM Bahrain Time to discuss the Company's financial and operational
performance for Q2 2025 and outline its strategic priorities moving forward.

ENDS

 

Khalid Al Rumaihi, Chairman of the Board

 

 

 

Ali Al Baqali, CEO

 

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

[Ticker: ALBH]

 

A Global Aluminium Leader: At plus-1.62 million metric tonnes per annum (mtpa)
(2024), Alba is a world-leading aluminium smelter with a proud 50-year legacy
in operational excellence, safety, environmental responsibility, and community
development.

 

Trusted Partner: A cornerstone of the Bahrain's economy, Alba produces
high-quality aluminium, including standard and value-added products, which are
exported to over 280 customers globally. With sales' offices in Europe
(Zurich), Asia (Singapore), and a subsidiary in the U.S., Alba is a reliable
partner on the world stage. Alba is dually listed on Bahrain Bourse and London
Stock Exchange and its shareholders are Bahrain Mumtalakat Holding Company
B.S.C. © (69.38%), Saudi Arabian Mining Company (Ma'aden) (20.62%) and
General Public (10%). Alba prioritises the highest quality standards,
reflected in its certifications: ISO 9001 (quality), ISO 14001 (environment),
ISO 27001 (information security), ISO 45001 (occupational health and safety),
and ISO 18788 (security operations management). Additionally, Alba
demonstrates its commitment to responsible manufacturing through
certifications like IATF 16949 (automotive quality), ISO 22301 (business
continuity management), ASI Performance and Chain of Custody Standards, and a
top 1% Platinum sustainability rating from EcoVadis.

 

Pioneering Sustainability: As the first aluminium smelter in the Middle East,
Alba is central to Bahrain's thriving downstream aluminium sector,
contributing significantly to the Kingdom's GDP. Committed to social
responsibility, Alba employs a workforce that is 87% Bahrainis (2024) and
invests heavily in employee training and development. Alba also plays a
crucial role in the Aluminium Downstream Park, therefore increasing the
contribution of non-oil sectors to the GDP of Bahrain. Alba has been
recognised for its initiatives to produce Aluminium responsibly through awards
such as Top ESG performer in Bahrain by ESG Invest, Safeguard Label from
Bureau Veritas and Best Corporate Governance Award by Ethical Boardroom.

 

Recognised for its environmental practices, social contributions, and
corporate governance, Alba launched a comprehensive ESG Roadmap in 2022
focusing on 6 priority areas: (1) Decarbonisation, (2) Green Energy &
Aluminium, (3) Circular Economy & Secondary Aluminium, (4) Employee
Welfare, (5) Collaboration & Partnership and (6) Transparency,
Communications & Due Diligence. Since its inception, Alba has invested
into numerous environment, sustainable and socio-economic development projects
that have had a positive impact on the society. Alba's first-of-its-kind
US$37.5 million zero-waste Spent Pot Lining Treatment Plant, Power Station 5
Block 4 Project, and the upcoming +6 MW Solar Farm Project are tangible
initiatives aligned with Bahrain's Net Zero Carbon Targets by 2060 led by HRH
the Crown Prince and Prime Minister of Bahrain. Specifically, Alba's PS5 Block
4 is a new 680.9-megawatt (MW) combined-cycle power plant that expands the
existing PS5 facility. Block 4 has increased the nameplate capacity of PS5
Complex from 1,800 MW to 2,481 MW and is reducing the Company's overall GHG
emissions intensity ratio by 0.5 tonnes of CO(2) per 1 tonne of aluminium
produced.

 

In a significant step towards its ESG goals, particularly its commitment to a
circular economy and secondary aluminium, Alba introduced EternAl(TM), its new
line of low-carbon aluminium products. Launched in June 2025, EternAl offers
two product series with multiple variations to meet diverse customer needs:
one featuring recycled content, and the other integrating verified in-house
carbon offsets.

 

Safety First, Always: Guided by the motto "Safety First, Safety Always," Alba
prioritises the well-being of its employees and contractors. The Company
achieved a record-breaking 38 million safe working hours without a lost-time
injury in July 2025. The Company has been recognised internationally for its
excellent Safety and Health track record with awards such as the RoSPA's
Lifetime President and President Awards (10+ Gold Medal Awards), the British
Safety Council's International Safety Award with Merit along with 4-Star Audit
Rating, as well as numerous awards from the National Safety Council (NSC).

 

Alba Stakeholder Engagement Plan

 

Alba prioritises open communication with all its stakeholders, including the
community, environmental and social groups. Through its Stakeholder Engagement
Plan, the Company proactively addresses environmental and social impacts of
its operations, outlining clear mitigation controls. Alba also maintains an
external Grievance Mechanism accessible through the Code of Conduct, allowing
stakeholders and the public to voice concerns and raise issues.

Scan the above to Alba's Stakeholder Engagement Plan

 

 

Alba's External Grievance Mechanism

 

Alba prioritises ethical conduct and environmental responsibility.
Stakeholders, employees, contractors, and the community can confidentially
report any potential breaches of Alba's Code of Conduct or raise concerns
about environmental and social impacts through the Alba Integrity Line
(https://www.albasmelter.com/en/category/code-of-conduct) . This independent,
multilingual hotline operates 24/7 and is accessible via a toll-free phone
number, the company intranet, or the website at www.albasmelter.com
(https://www.albasmelter.com) .

Scan the above to Alba's Code of Conduct

 

For further details, please contact:

Eline Hilal

Director, Investor Relations, Insurance & Corporate Secretary

Tel:          (973) 1783 5100

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

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

 

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