Alba earnings fall 84% during global economic woes

Alba

Aluminium Bahrain (Alba) reported a profit of BD29.9 million ($79.5 million) for the second quarter of 2023, a drop of 83.6 percent year on year, as global economic challenges weighed down its earnings. 

Revenue fell 25.6 percent to BD387 million in the quarter from BD520.4 million a year earlier.

Production reached 405,628 metric tonnes, an increase of 9,085 metric tonnes from Q2 2022. 

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Sales volume topped 392,258 metric tonnes, up by 3,816 metric tonnes year on year.

“Q2 2023 has seen a continuation of economic uncertainty amidst bearish manufacturing activity and ongoing interest rate hikes by the US Federal Reserve and European Central Bank,” the company said in a statement.

Consumption has started to improve – up six percent yearly – supported by the Chinese government’s move to ease monetary easing measures.

Middle East demand reported a one percent increase annually in the second quarter.

Alba reported a profit of BD77.4 million in the first half of 2023, down 76.5 percent year on year. 

Revenue fell 22.4 percent to BD757 million in the first half from BD975.3 million in the same period last year.

“Through our ongoing cost discipline and operational improvements, we have performed well despite the bearish market sentiment,” said Alba’s CEO Ali Al Baqali.

Alba’s board proposed to pay an interim cash dividend of 13.28 fils per share (excluding the treasury shares), or BD18.80 million.