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Alba announces 2017 net income jumps by 91pct
Alba announces 2017 net income jumps by 91pct
Alba closed 2017 strong the sound financial performance reflected the Company’s resilience in setting the benchmark on Line 5 recovery and was driven by favorable management performance.
The Company reported Total Sales of BD 857.8 million (USD 2.3 billion) in 2017, up by 28% versus BD 669.8 million (USD 1.8 billion) in 2016 while Q4 2017 Total Sales stood at BD 252.7 million (USD 672.2 million), up by 39% versus BD 181.6 million (USD 483.0 million) for the same period in 2016 – both driven by higher LME prices.
The Company generated a Net Income of BD 92.5 million (USD 245.9 million) in 2017, up by 91% compared to BD 48.4 million (USD 128.7 million). As for the fourth quarter of 2017, Alba posted a Net Income of BD 23.5 million (USD 62.4 million), up by 72% versus BD 13.7 million (USD 36.5 million) for the same period in 2016
The Company generated a Net Income of BD 92.5 million (USD 245.9 million) in 2017, up by 91% compared to BD 48.4 million (USD 128.7 million). As for the fourth quarter of 2017, Alba posted a Net Income of BD 23.5 million (USD 62.4 million), up by 72% versus BD 13.7 million (USD 36.5 million) for the same period in 2016.
Alba’s Board of directors recommended a dividend distribution of BD 36.8 million (USD 97.9 million) for the fiscal year 2017 which will be paid from March 21, 2018.
2017 Industry Highlights:
1. World consumption at 63.6 million metric tonnes and up by 6% Year over Year. Asian demand rose by 7% YoY led by consumption in China (+8% YoY). MENA demand remains strong (+4% YoY) driven by major infrastructure spending in Saudi Arabia (+12% YoY). Europe consumption up by 3% YoY driven by strong growth in transport (auto body sheet), building and construction sectors while demand in North America continues with the same momentum (+2% YoY) denominated by the automobile production.
2. World production up by 8% YoY (63.5 million tonne). Asia Production up by 12% YoY supported by Chinese output (+13% YoY) despite winter closures and partially offset by new smelters’ restarts. North America & Europe production down by 2% YoY and 1% YoY respectively.
3. World market in deficit with China (-43 Kt) and in deficit w/o China (-1.9 million mt).
4. LME inventories at 1.1 million tonne in December (down by 50% YoY).
5. Physical premiums prices almost flat.
2017 Alba Highlights:
1. Continuous improvement on Safety performance with the launch of ‘Safety in All Seasons’ Campaign.
2. Sales volume up by 0.4% YoY to reach 978,195 tonne while Production topped 981,016 tonne (+1% YoY).
3. 2017 Value-Added Sales averaged 57% versus 56% in 2016.
4. Project Titan - Phase II: normalised savings of USD 79 per tonne versus a target of USD 100 per tonne with taking into account the benefits of insurance claim.
5. Line 6 Expansion Project milestones::
a). Line 6 Smelter [5 million-hours w/o LTIs; overall progress: 40%]
b). Power Expansion [3 million-hours w/o LTIs; overall progress of Power Station 5 (PS 5) at 47% & PDS at 65%]
6. Alba signs MoU with GE for 4th GT block in PS 5.
7. Alba and Bechtel sign MoU to explore further opportunities.
Source : Strategic Research Institute, SteelGuru