Industry Qatari aluminium maker defies market challenges By Chris Hamill-Stewart October 24, 2024, 1:10 PM Alba Alumina prices have climbed throughout 2024 as a result of supply disruptions in India and Australia Qamco profits up 21% Material prices rising Improved operational costs Qatar Aluminum Manufacturing Company, known as Qamco, increased its profits by 21 percent in the first nine months of 2024, despite the rising cost of source materials. Qamco’s profit hit QR427.7 million ($117.3 million) at the end of September 2024, up from QR353.5 million in the same period last year. Figures issued by the company and posted on the Qatar Stock Exchange website on Tuesday showed an increase in earnings per share to QR0.077 for the third quarter of 2024, compared to earnings per share of QR0.063 in the same period of the previous year. Despite a slight decline in average selling prices compared with the same period last year, Qamco drew a significant profit by improving operational costs and increasing sales volumes. Qamco is 51 percent owned by Qatari state energy agency QatarEnergy, and the remaining 49 percent is listed publicly. Qamco is one of Qatar’s 20 biggest companies. Qamco stocks are up 2 percent in the year to date, with shares trading at QR1.256 as of October 23. The aluminium producer’s success comes despite wider challenges in the sector. “Twenty-one percent is pretty exceptional, especially with the current ping pong price action,” Andy Farida, a research analyst focused on aluminium at Fastmarkets, said. “The LME 3-M [London Metal Exchange three-month] price has been ranging between the low of $2,200 to $2,800 but overall trajectory and market dynamics can support higher prices.” “Qamco’s performance is impressive in light of fluctuations in the alumina market, a key substance used in the production of aluminium. The alumina FOB index has doubled in price, from $350 to $700 as of the year to date,” Farida said. Alumina prices have climbed throughout 2024 as a result of supply disruptions in India and Australia. Farida said Qamco’s success could be a result of keeping their operational costs low, or because they bought in alumina long term, before the year’s price spike. But alumina’s price increase could yet affect Qamco. Farida said that, with rising production costs of raw materials, alumina’s price could soon be reflected in next year’s margins. EGA buys majority stake in US aluminium recycler Maaden-Alba merger ‘a potential game changer’ Emirates Global Aluminium profit down as prices weaken Other regional producers have struggled in 2024 with market dynamics. Net profits at Emirates Global Aluminium, the biggest non-oil industrial company in the UAE, fell 6 percent in the first half of 2024, as aluminium prices dropped and alumina spiked. In Bahrain, a major deal is underway with Saudi Arabian mining company Maaden set to acquire a 20.6 percent stake in Aluminium Bahrain (the country’s biggest company by revenue). The merger is currently pending all required due diligence and regulatory approvals.