Murray and Al Kooheji
Alba suffers Q3 loss of $35m
Manama, November 4, 2012
Aluminium Bahrain (Alba), ranked as one of the largest aluminium smelters in the world, has registered a net loss of $35 million for the third quarter, a statement said.
Announcing the third quarter results on Sunday, Alba chief executive Tim Murray said: "Despite the low LME levels, Alba was able to still generate free cash flow while the majority of the world’s smelters are operating cash negative."
"The company’s focus on strengthening its competitive edge through improving production processes across the plant has seen the production on pace to surpass 2011 record," he stated.
Alba pointed out that global consumption had gone up by 3.9 per cent while world production fell by 2.4 per cent. The demand for aluminium remains very tight on the back of strong North American, Mena and Asian demand, it added.
According to Murray, the LME cash average fell to $1,922 mt from $2,400 mt in the same period last year.
Chairman Mahmood Hashim Al Kooheji said, "Alba’s resilient business model underpins the company’s healthy performance amid the downtrend of LME prices. This has enabled the company to maintain its position as a flagship for Bahrain’s economy and a key driver to the growth of the kingdom’s aluminium sector."
The key highlights of the third quarter include Alba’s settlement of Rico case with Alcoa for a total value of $447 million consisting of $85 million cash component along $362 million from long-term alumina sales agreement.
Besides the period saw a boost in production capacity in Pot Line 5 through the successful implementation of the 1600 mm long anode, he added.-TradeArabia News Service