Manama: Aluminium Bahrain B.S.C. (Alba), the world's largest single-site aluminium smelter, has announced its financial results for the first quarter of 2025, revealing a significant 25.9% year-on-year decline in profit. The company reported a profit of BD18.1 million (US$48.2 million) for Q1 2025, compared to BD24.5 million (US$65 million) in the same quarter of 2024.
According to Bahrain News Agency, the decline in profit comes alongside a decrease in basic and diluted earnings per share, which fell to 13 fils in Q1 2025 from 17 fils in Q1 2024. Total comprehensive income also saw a downturn, dropping 39.4% to BD16.8 million (US$44.7 million) from BD27.7 million (US$73.6 million) the previous year. Despite these drops, the company reported a 22.2% increase in revenue from contracts with customers, reaching BD408.9 million (US$1,087.6 million).
The company's gross profit for the first quarter was BD50.8 million (US$135.1 million), down by 11.3% from BD57.3 million (US$152.3 million) in Q1 2024. Total assets rose by 1.25% to BD2,706.9 million (US$7,199.2 million), though total equity slightly declined by 1.1% to BD1,902.7 million (US$5,060.4 million).
Higher London Metal Exchange prices and increased premiums contributed positively to revenue. However, the rising production costs significantly impacted earnings before interest, tax, depreciation, and amortisation (EBITDA), leading to the reduced profit.
Alba highlighted its ongoing commitment to environmental, social, and governance (ESG) practices, celebrating multiple achievements in these areas. The company received six awards from the National Safety Council and the Royal Society for the Prevention of Accidents' Life President Award for outstanding safety performance. Alba also launched a site-wide safety and health campaign and promoted several Bahraini employees to leadership positions.
In sustainability efforts, Alba started using electric, battery-powered aluminium fluoride feeding vehicles and joined the Sea Cargo Charter for sustainable shipping practices. The company also became the first in Bahrain to join Tamkeen's Open Innovation Programme, aimed at fostering innovation from local startups and SMEs.
Operationally, Alba achieved a sales volume of 374,809 metric tonnes, marking a 3% increase year-on-year, despite a slight decline in net finished production. The company's value-added sales accounted for 71% of total shipments, reflecting a 5% increase from the previous year.
Khalid Al Rumaihi, Chairman of Alba's Board of Directors, expressed confidence in the company's fundamentals and operational efficiency, noting that the increase in alumina prices impacted profits. CEO Ali Al Baqali highlighted the company's record sales volume, value-added sales, and safety performance as key achievements for Q1 2025.
Alba management is scheduled to hold a conference call to discuss these financial and operational results on Wednesday, 14 May 2025, at 4:00 PM Bahrain time.