Alba reports decreased profits amid rising costs

MANAMA - Aluminium Bahrain B.S.C. (Alba), the world’s largest aluminium smelter on one site, reported a 25.9% year-over-year decline in profits for the first quarter of 2025, despite an increase in revenue from contracts with customers. The company’s profit for the quarter stood at BD18.1 million (US$48.2 million), down from BD24.5 million (US$65 million) for the same period in 2024. Basic and diluted earnings per share also fell to fils 13 from fils 17 year-over-year.

The total comprehensive income for the quarter was BD16.8 million (US$44.7 million), representing a 39.4% drop from BD27.7 million (US$73.6 million) in the first quarter of 2024. Gross profit for the quarter decreased by 11.3% year-over-year to BD50.8 million (US$135.1 million). Alba attributed the lower bottom-line to significantly increased production costs, which compressed EBITDA despite a strong top-line performance driven by a 20% increase in the London Metal Exchange (LME) price and a 38% rise in premiums year-over-year.

Revenue from contracts with customers rose by 22.2% year-over-year to BD408.9 million (US$1,087.6 million), bolstered by the higher LME price and premiums. Total (EPA:TTEF) equity as of March 31, 2025, decreased slightly by 1.1% to BD1,902.7 million (US$5,060.4 million), while total assets increased by 1.25% to BD2,706.9 million (US$7,199.2 million).

The global aluminium market saw a modest 2% increase in demand year-over-year, with varying performance across regions. North America displayed a 1% increase in demand, attributed to consumer spending and a recovering housing market, while China saw a 1% increase in aluminium consumption. The Middle East experienced a 3% rise in demand, but Europe’s consumption remained flat.

Supply growth was limited globally, with a 1% increase year-over-year. China’s supply rose modestly by 1%, Europe saw a marginal increase, and North America’s production contracted by 3%. The Middle East’s supply decreased by 1%. The market balance showed a surplus when including China and a deficit when excluding it.

The company also highlighted its commitment to Environmental, Social, and Governance (ESG) achievements, including safety awards, employee development, and sustainability initiatives. Alba celebrated various operational milestones, such as a 3% increase in sales volume and a 5% year-over-year increase in Value Added Sales.

Alba’s Board of Directors Chairman, Khalid Al Rumaihi, commented on the company’s resilience and operational efficiency despite the impact of higher alumina prices. CEO Ali Al Baqali emphasized the company’s safety performance and operational excellence.

The company’s management will hold a conference call on Wednesday to discuss the financial and operational performance for Q1 2025 and outline strategic priorities.

This report is based on a press release statement from Aluminium Bahrain B.S.C.

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