Aluminum Bahrain Company, Alba, the world’s leading aluminum fuse, announced a profit of 37.1 million dinars (98.6 million dollars) during the fourth quarter of the year 2024, an increase of 58.5% on an annual basis, compared to a profit of 23.4 million dinars (62.2 million dollars) For the same period in 2023.
The company announced the basic and low share of the share in the profits of 26 fils per share for the fourth quarter of the year 2024, compared to a basic and reduced share of the share in the profits of 16 fils per share for the same period of the year 2023. The total of comprehensive income during the fourth quarter of the year 2024 reached a Its value is 38.1 million dinars (101.3 million dollars), compared to a total income of 16.3 million dinars (43.2 million dollars) during the fourth quarter of the year 2023, an increase of 134.4% on an annual basis.
For the full year 2024, Alba announced a profit of 184.5 million dinars (490.8 million dollars), an increase of 56.4% on an annual basis, compared to a profit of 118 million dinars (313.9 million dollars) during the year 2023. On the basic and reduced share of the share in profits, at a value of 130 fils per share, compared to a basic and low share of the share in the profits of 83 fils per share during the year 2023. The total income for the full year reached 2024, which value 183.4 million dinars (487.8 million dollars), i.e. an increase 71.9% on an annual basis, compared to a total comprehensive income of 106.7 million dinars (283.8 million dollars) for 2023.
The total of property rights on December 31, 2024 amounted to 1923.9 million dinars (5116.9 million dollars), recording an increase of 7.5% on an annual basis, compared to a value of 1789.2 million dinars (4758.6 million dollars) on December 31, 2023. As for the total of assets to date December 31, 2024, reached 2673.4 million dinars (7110 million dollars), compared to 2553.6 million dinars (6791.4 million dollars) until the date of December 31, 2023 – an increase of 4.7% on an annual basis.
The company’s revenues and profits were supported by the high prices on the London Metal Stock Exchange by 17% on an annual basis during the fourth quarter of the year 2024, and by 7% on an annual basis for the full year from 2024. However, the high prices of “alumina” raw material negatively affected these profits in a way partial.
The Board of Directors of Aluminum Company Bahrain (Alba) decided during its meeting yesterday, Tuesday, the recommendation to distribute cash dividends to the shareholders whose names are registered in the company’s record of the date of entitlement. The value of the final cash profits is 26.58% of the nominal value of the share, equivalent to 26.58 fils per share, and a total of 37633403 dinars (100 million dollars).
Global supply and demand (based on market information and analyzes from CRU)
Increase in global markets +3% on an annual basis
The dynamics of the global economy: I witnessed some flexibility with the moderate levels of inflation and stability of growth, but the risks are still the result of geopolitical tensions, commercial policies and supply restrictions.
China: The demand for initial aluminum increased by 4% on an annual basis driven by the energy and transportation sectors activity, while the excessive supply is still a source of concern.
Middle East: The demand increased by 1% on an annual basis due to the high consumption in Bahrain (+4% on an annual basis).
Europe: Consumption remained at the same level, due to the impact of poor manufacturing activities and uneven regional growth.
North America: Consumption decreased by 1% on an annual basis, affected by the weak activity in the auto and construction sectors despite the strong performance of the mobilization sector and the electrical sector.
The increase in demand in global markets by +3% on an annual basis
China: The offer increased by 3% on an annual basis, but it settled at the level of the ceiling of the production capacity of 45 million metric tons (about 43 million metric tons).
Europe: Production increased by 2% on an annual basis supported by production in Germany and Russia.
Middle East: The offer increased by 1% on an annual basis, as the Kingdom of Saudi Arabia contributed an increase of 8%.
North America: Production decreased by 2% on an annual basis, and the main reason for this is due to the 12% decrease in US production after the closure of New Madrid fuse.
Market budgets: The global market witnessed a slight deficit, as the inventory decreased to its lowest levels compared to the records of previous years (about 242,000 metric tons with the calculation of China), and a surplus without the calculation of China (about 41,000 metric tons).
London Stock Exchange prices for the highest revenue
London Metal Stock Exchange prices: The prices of the London Metal Stock Exchange ranged at, $ 419 per ton during the year 2024 (+7% on an annual basis).
Inventory on the London Metal Stock Exchange: Inventory increased by 12% on an annual basis to 635,000 metric tons at the end of the year.
Top returns: The highest immediate revenue for aluminum in the fourth quarter of 2024 has reached its highest levels during the years, driven by shrinking the offer and geopolitical factors.
The most prominent events of operational performance in “Alba”
Sales volume: rose to 1,611,638 metric tons (+1% on an annual basis) despite market challenges.
Net final products: record standard levels at the end of the year 2024 amounted to 1,622,261 metric tons (+0.1% on an annual basis).
Value sales: ranged at 72% of the total shipments (an increase of 2023, reaching 68%). The value of sales of value -added products increased to 1,157,328 metric tons (+5.6% on an annual basis).
Digital Mass: The savings achieved in the company’s cost reduction program amounted to 59.57 million dollars for the target savings of $ 60 million.
Public economic scene expectations: Commercial turmoil controls the economic scene
The continuation of the uncertainty in the market: The year 2025 began with a noticeable variation in the prices of the London Metal Stock Exchange. The possibility still exists with a global trade war, as the possibility of applying the tariff imposed on Canadian and Mexican products remains even after stopping them temporarily. Renewed talks about the European Union imposing sanctions on Russian aluminum, three years ago, the Ukrainian war has increased the uncertainty in the market.
Demand expectations: The global demand for aluminum witnessed a slowdown at the beginning of the year 2025, but the demand is expected to recover during the second half of the year, and this depends on the volume of acquaintances and the length of its application period. The demand is expected to witness modest growth for China and the rest of the world during the first quarter of 2025.
Display conditions: The growth of the global supply is expected to be limited during the year 2025, following the decisions to reduce production in some of the mosques and the delay in increasing production in other mosques that the market witnessed recently, as the production capacity in China reached approximately 45 million metric tons.
Topical Revenue Expectations: The higher revenue for alloys in the American Middle West has increased recently due to the announcement of the introduction of the tariff. European higher revenues may face pressure, especially if the United States imposes a 25%tariff.
The price of the London Metal Stock Exchange prices: The prices are expected to range between 2400 dollars per ton and 2500 dollars per ton, affected by a mixture of increasing and declining the volume of supply and demand.
Alba’s priorities: safety, sustainability, success
Achieving leadership: safety first, always sustainability
o Interesting with the goal of the Kingdom of Bahrain to reach the Carbonian zero neutrality by 2060, Alba works to integrate the principles of sustainability in all its operational operations – starting with the supply of raw materials to the delivery of products – in order to reduce the environmental impact of their operations.
Officer and growth excellence
o Achidation during the year 2025 in the net final products, which amounted to 1622261 metric tons last year.
o Achieving the target savings of digital fortification during the year 2025, which amounts to $ 60 million, and to continue to seek the target savings until the year 2026, which amounts to 150 million dollars.
Enhancing the presence in the markets and efficiency
o Take advantage of the company obtaining two certificates of aluminum sustainability and ecovadis, and the launch of the Eternal Carbon -low aluminum product line, in entering new markets and increasing sales of value -added products.
o Completion of the solar garden project (with a capacity of +6 megawatts) to enhance the initiatives to benefit from clean energy.
o Establishing Alba-Dikki Sustainable Solutions to treat aluminum malice by September 2026 (so that Alba and Dikki’s share of shares is 70% and 30%, respectively)
o Completion of the feasibility study (the third stage) of the “developed alternative line”, which will replace the flying lines 1-3.
Commenting on the financial performance of the company for the full year 2024, the Chairman of the Board of Directors, Khaled Al -Rumaihi, said:
“The exceptional financial performance of the company during the year 2024, which witnessed an annual increase of 56% in the profit, proves our operational flexibility and our ability to adapt to the variables despite the variation in the levels of supply and demand in the market and the high costs of alumina. The significant growth in our returns per share reflects our strategic focus To achieve operational excellence and create value for shareholders. “
He added: “Today we celebrate a greater achievement than merely we complete the energy station project, as it is a step forward towards achieving a more sustainable future for the Kingdom of Bahrain. This project represents a qualitative shift in our commitment to achieving the carbon zero neutrality by 2060, and setting standards for responsible industrial development in the region “.
For his part, the CEO of Alba, Ali Al -Baqali, said:
“I would like to express an honorary adult and pride in the team in Alba for its unremitting efforts during the past year full of challenges for the aluminum industry. We have achieved strong results thanks to the concerted efforts of all qualified national cadres in terms of cost management and maximum benefit from operational operations.
This success is supported by our steadfast commitment towards safety, which, to date, has resulted in the registration of 31 million safe working hours without any waste injuries.
The company’s management intends to hold a phone meeting on Wednesday, February 19, 2025 at 01:00 pm, the Kingdom of Bahrain time, to discuss the financial and operational performance of the company during the fourth, year and twelve months of the year 2024, and to determine the company’s strategic priorities during the next stage.
