Aluminium Bahrain (Alba), one of the largest and modern aluminium smelters in the world, posted a decline in both sales revenues and net profit for the first quarter of this year due to lower LME prices, which declined 15 per cent year-on-year.

Alba’s metal sales for the first quarter of 2014 reached $459 million compared to $498 million in Q1 2013 due to lower LME prices (down by 15 per cent YoY). In addition, Alba generated $27 million from non-metal sales in the first quarter 2014 bringing total sales revenue to $486 million versus $498 million in Q1 2013.

The company registered a net income of $46 million vs $108 million for the same period in 2013 – down by 57 per cent YoY.

The LME cash average was at $1,708 per metric tonne in Q1 2014 compared to $2,001 for the same period last year, Alba said.

In March 2014, Alba paid $82 million as the final dividend for 2013 bringing the total dividend for 2013 to $135 million, a statement said.

During the quarter Alba achieved improved safety performance with recording 2 million hours without an LTI; and significant uplift in physical premiums (38pc YoY).

Alba sales volumes (in metric tonnes) were up by 3.1pc YoY while production figures grew by 2.1pc on the back of strong operational performance

Sales of value-added products represented 66pc of total shipments, a stable performance versus Q1 2013, the statement said.

Commenting on Q1 2014 results, Alba’s Chief Executive, Tim Murray said: "Alba had strong operational performance despite a significant drop in LME prices. Alba was able to increase free cash flow for the quarter in the face of difficult market conditions.  

"For the remainder of 2014, Alba will focus on leveraging the strong physical premiums and accelerate our initiatives under Project Titan," he said.

Chairman of Alba’s Board of Directors, Daij Bin Salman Bin Daij Al Khalifa added: “Alba continues to make money and maintain strong operational fundamentals despite the very difficult LME price environment. I would also like to thank all the employees of Alba for their continued efforts to improve safety.”

According to the statement, Alba's priorities for the year will be: continuous focus on safety and training initiatives; deliver on Project Titan; leverage physical premiums; and complete Line 6 Bankable Feasibility study (BFS) within the first half of 2014. - TradeArabia News Service