Alba News

Alba Partners with NVTC’s R&D arm to Upskill Employees with Artificial Intelligence Knowledge

Aluminium Bahrain B.S.C. (Alba) has joined forces with the Nasser Artificial Intelligence Research and Development Centre (NAIRDC), the research and development arm of the Nasser Vocational Training Centre (NVTC), to deliver a comprehensive three-day ‘Advanced Artificial Intelligence (AI) Applications in Industry 4.0’ course for 35 of its employees.

Alba’s Chief Executive Officer Ali Al Baqali visited the students on 21 August 2024 at the Company’s Oasis Hall along with Dr. Jassim Haji, Executive Advisor for AI and Data Science, NAIRDC and representatives from both organisations.

“Artificial Intelligence is a dynamic force revolutionising industries and societies,” stated Alba’s CEO Ali Al Baqali. “This cutting-edge course is pivotal to our Industry 4.0 journey and our dedication to cultivating a future-ready workforce. By empowering our team with AI expertise, we’ll streamline operations, drive innovation, and achieve unprecedented excellence.

We’re also pleased to partner with NAIRDC, a leading institute in Artificial Intelligence in Bahrain, to elevate our employees’ AI acumen.”

NAIRDC's CEO, Dr. Abdulla bin Naser Al Noaimi, stated, “We commend Alba for their commitment to technological innovation. Together, we are working to implement high-quality initiatives that leverage cognitive integration with modern technology and artificial intelligence.”

Dr. Al Noaimi highlighted the pivotal role of AI in driving transformation in the industrial sector and various processes across organizations in the near future. He noted that this collaboration with Alba is not the first of its kind and expressed pride in NAIRDC's leadership in AI at both local and regional levels. He also emphasized the importance of continued joint efforts with all entities to accelerate digital transformation and the adoption of AI applications in Bahrain.

Concluding on 22 August 2024, this course covers various aspects of AI, including modern applications, future trends, and fundamentals of generative AI and prompt engineering.

Alba Discloses its Financial Results for the Second Quarter and H1 of 2024

Q2 & H1 2024 Financial Performance

Aluminium Bahrain B.S.C. (Alba) (Ticker Code: ALBH), one of the world’s largest aluminium smelters, has reported a Profit of BD68.5 million (US$182.2 million) for the second quarter of 2024, up by 129.2% Year-over-Year (YoY), versus a Profit of BD29.9 million (US$79.5 million) for the same period in 2023. The Company reported Basic and Diluted Earnings per Share of fils 48 for Q2 2024 versus Basic and Diluted Earnings per Share of fils 21 in Q2 2023. The Total Comprehensive Income for Q2 2024 stood at BD66.7 million (US$177.4 million) versus Total Comprehensive Income for the second quarter of 2023 of BD32.6 million (US$86.8 million) – up by 104.5% YoY. Gross Profit for Q2 2024 was BD102 million (US$271.2 million) versus BD67.9 million (US$180.6 million) for the same period in 2023 – up by 50.1% YoY. With regards to the Revenue from contracts with customers in Q2 2024, Alba generated BD407 million (US$1,082.3 million) versus BD387 million (US$1,029.4 million) in Q2 2023 - up by 5.2% YoY.

For the First Half of 2024, Alba has reported a Profit of BD93 million (US$247.3 million), up by 20.2% YoY versus a Profit of BD77.4 million (US$205.7 million) for the same period in 2023. The Company reported Basic and Diluted Earnings per Share of fils 66 for H1 2024 versus Basic and Diluted Earnings per Share of fils 55 for the same period in 2023. Alba’s Total Comprehensive Income for H1 2024 was BD94.4 million (US$251 million), up by 35.4% YoY, compared to a Total Comprehensive Income of BD69.7 million (US$185.4 million) in H1 2023. Gross Profit for the First Half of 2024 was BD159.2 million (US$423.5 million) versus BD147.8 million (US$393 million) in H1 2023 – up by 7.7% YoY. Alba generated in H1 2024 Revenue from contracts with customers of BD741.5 million (US$1,972.1 million) versus BD757 million (US$2,013.2 million) in H1 2023 – a drop by 2% YoY.

Total Equity as of 30 June 2024 stood at BD1,861.2 million (US$4,950.1 million), up by 4%, versus BD1,789.2 million (US$4,758.6 million) as of 31 December 2023. Alba’s Total Assets as of 30 June 2024 were BD2,631.1 million (US$6,997.5 million) versus BD2,553.6 million (US$6,791.4 million) as of 31 December 2023 - up by 3%.

Alba’s top-line and bottom-line were driven by LME prices which increased 11% YoY in Q2 2024 and 1% in H1 2024. However, lower premiums, down 21% in Q2 and 32% in H1 compared to the previous year, partially offset these gains.

The Board of Directors of Aluminium Bahrain B.S.C. (Alba) resolved during the virtual Board meeting on Tuesday 13 August 2024, to recommend the distribution of Interim Dividend as at 30 June 2024 to the shareholders whose names are registered on the Company’s register on the Record Date. The cash interim dividend is 18.59% of the share nominal value, equivalent to Fils 18.59 per share amounting to BD26,320,150 (US$70 million).

Industry Highlights [Based on Market Intelligence]

  • Slow Demand Recovery Amidst Macroeconomic Challenges (+2% YoY)

    • The global economy continues to face several challenges including persistent inflation, geopolitical tensions and supply chain disruptions. These factors have collectively contributed to a passive demand environment.

    • China: Despite government stimulus efforts, Chinese consumption growth has moderated to 3% year-over-year (YoY), indicating a lack of robust domestic demand momentum.

    • Middle East: Supported by increased consumption in UAE, the Middle East region has registered a modest 2% YoY demand uptick.

    • Eurozone: Economic uncertainty persists and is marked by an uneven pace of recovery. Demand down by 4% YoY.

    • US: US services sector continues to outperform manufacturing underpinned by healthy consumer spending. However, weak building and construction activity has weighed on aluminium demand resulting in a 1% decline in primary demand.

  • Global Aluminium Production rises 3%

    • Despite overall weak demand, global primary production rose due to higher output in China, Europe, and the Middle East.

    • Chinese supply climbed 4%YoY as Yunnan smelters operated at full capacity except for Yunnan Hongtai smelter as heavy June rains boosted hydropower in this province.

    • European supply edged up by only 1% YoY due to economic uncertainty.

    • Middle East supply up by 1% YoY.

    • North American supply down by 2% YoY mainly due to a 15% YoY drop in US production.

    • As Chinese production is growing at a slower pace than consumption (China continues to hold to its 45 million tonnes target annually), the world market is in deficit with China (-0.40 million MT) and w/o China (-0.13 million MT).

  • LME Price

    • LME price averaged US$2,519/t in Q2 2024, up by 11% YoY. LME inventories jumped 88% YoY reaching about 1 million tonnes, fuelled by growing stockpiles of Russian metal in LME warehouses.

  • Alba’s Operational Highlights

    • Sales’ volume topped 397,538 metric tonnes (MT), up by 1% YoY while Production dipped slightly by 0.5% YoY to reach 403,747 MT.

    • Value Added Sales accounted for 73% of the total sales’ shipments [VAP: 288,312 MT in Q2’24 versus 272,944 MT in Q2’23].

    • Achieved savings for the e-Al Hassalah (the Company’s improvement programme) at US$35 million against 2024 Target of US$60 million.

    • Alba signs an agreement with SAP, a market leader in enterprise application software, to upgrade its enterprise resource planning solution (ERP) to SAP’s latest software – S/4HANA Cloud.

    • Alba CEO takes helm of International Aluminium Institute as its Chairman.

  • Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects [Based on Market Intelligence]

    • Market Uncertainty Persists: Market sentiment remains cautious due to a complex interplay of factors affecting LME prices.

    • Supply-Demand Dynamics: Increased global production, particularly from China, combined with passive demand, is exerting downward pressure on LME prices.

    • Economic Recovery Hope: Anticipated US interest rate cuts may stimulate construction activity; hence, supporting aluminium demand.

    • Tight Supply Conditions: Limited new smelting projects and China's production cap will maintain constrained supply conditions in the near term.

    • Premium Outlook: Premiums are expected to stabilise in the short term before resuming an upward path, driven by strengthening demand from 2025 and the implementation of the Carbon Border Adjustment Mechanism (CBAM).

    • LME Price Forecast: Aluminium prices are anticipated to trade within a narrow range of US$2,200 to US$2,400 per tonne in the near term.

  • Alba Priorities: Safe, Sustainable, Successful

    • Leading the Way: Safety First, Sustainability Always

      • Aligned with Bahrain's objective of net-zero emissions by 2060, Alba embeds sustainability principles in all operations, minimizing environmental impact from raw material sourcing to product delivery.

    • Operational Excellence and Growth

      • Exceed 2023 Net Finished Production of 1,620,665 MT and achieve e-Al Hassalah 2024 Target of US$60 million (versus 2026 Target of US$150 million).

    • Capacity Expansion and Efficiency Enhancement

      • Leverage its industry-leading certifications such as Aluminium Stewardship Initiative (ASI), EcoVadis and Low-Carbon Aluminium EternAlTM to penetrate new markets and drive growth in Value Added Sales (VAP).

      • Complete Block 4 Project and Solar Farm (+6 MW) by Q4 2024.

      • Review Feasibility Study Class III for ‘New Replacement Line’.

 

Commenting on the Company’s performance for the second quarter of 2024, the Chairman of Alba’s Board of Directors, Khalid Al Rumaihi stated: “Building on our Q1 performance and despite navigating a challenging market landscape marked by depressed premiums, we are pleased to report another quarter of solid results thanks to our dedication to operational excellence. This performance has enabled us to return value to shareholders through an interim cash dividend of US$70 million.

We are confident that if premiums had held steady at Q2 2023 levels, our performance would have been even more robust. We remain optimistic about our prospects for the remainder of 2024.”

Alba’s Chief Executive Officer, Ali Al Baqali, added: “The aluminium industry continues to face economic headwinds. However, focusing on the aspects within our control has enabled us to navigate these challenges while positioning ourselves for sustained growth when market conditions improve.

Our recent achievement of 22 million safe working hours without a Lost Time Injury is a testament to our team’s dedication to Safety, a core value at Alba. This Safety milestone is directly linked to our overall operational performance and contributes significantly to our success.”

Alba Management will hold a conference call on Wednesday 14 August 2024 at 2:00 PM Bahrain Time to discuss the Company's financial and operational performance for Q2 2024 and outline its strategic priorities moving forward.

Alba and INJAZ Bahrain Unite to Empower Future Leaders

Aluminium Bahrain B.S.C. (Alba) has joined forces with INJAZ Bahrain to empower the next generation of Bahraini leaders. Over 100 university students participating in Alba’s summer internship programme took part in two intensive training workshops -- featuring INJAZ Bahrain’s Innovation Camp and Job Shadow programmes -- which were held on 06 and 07 August at Alba's Oasis Hall.

Alba CEO Ali Al Baqali attended part of the workshop activities, and emphasised the importance of continuous learning, inspiring students to make the most of their educational journey. Al Baqali also lauded INJAZ Bahrain's vital role in developing and empowering Bahraini youth under the exceptional leadership of Her Highness Shaikha Hessa bint Khalifa Al Khalifa, Chairperson of INJAZ Bahrain.

Such collaboration underscores Alba and INJAZ Bahrain’s shared commitment to empowering young Bahrainis with creativity and interpersonal skills necessary for success in today’s dynamic market.

Alba and Daiki Aluminium Forge Strategic Partnership to Establish Sustainable Aluminium Dross Processing Plant in Bahrain

Aluminium Bahrain BSC (Alba), the world’s largest single-site smelter, and Japan’s leading aluminium product manufacturer, Daiki Aluminium Industry Company Ltd, today announced on Wednesday 07 August 2024 a strategic partnership to establish a sustainable aluminium dross processing business in the Kingdom of Bahrain.

Held at Alba premises, the MoU’s signing ceremony was attended by Alba’s CEO Ali Al Baqali, Acting Chief Marketing Officer Hisham Al Kooheji, and Alba’s Executive Management Team. Daiki Aluminium Industry Company Ltd.’s Chairman and Representative Director Yamamoto Takaaki, Director and Senior Managing Executive Officer Goto Kazushi, and Vice General Manager, Overseas Business Coordination Department Fukushima Toshitake were also present.

This collaboration not only reinforces the thriving Bahrain-Japan economic partnership but also paves the way for innovative advancements in sustainable aluminium production. By synergizing Alba's industry-leading expertise and Daiki Aluminium's cutting-edge technologies, this joint venture is primed to contribute to the Kingdom’s environmental goals while aligning seamlessly with Alba’s ESG Roadmap. Central to this partnership is a shared commitment to circular economy principles. The aluminium dross processing facility will employ state-of-the-art technology to recover valuable aluminium metal while significantly reduce waste, thereby contributing to Bahrain's sustainability goals.

Alba's Chief Executive Officer, Ali Al Baqali, emphasised the transformative nature of this partnership and stated: “This strategic alliance with Daiki Aluminium marks a pivotal moment in Alba's sustainability journey. By harnessing Daiki Aluminium's technological prowess, we are not only optimising our operations but also making a contribution to Bahrain's economic landscape. This collaboration underscores our dedication to creating lasting value for our stakeholders while advancing the circular economy.

This joint venture will serve as a model for sustainable aluminium production, demonstrating the power of collaboration to drive positive change.”

Adding further, Daiki Aluminium Industry Company Ltd.’s Chairman and Representative Director Yamamoto Takaaki said:

“With the signing of this MoU, we will build on our global partnership and help Alba and the Kingdom of Bahrain achieve their sustainable environmental goals. We are very proud to form a strategic alliance with Alba, one of the world's leading aluminum smelters, and we are confident that this partnership will make a significant contribution to the development of a sustainable aluminum industry.

Since our founding in 1922, we have focused on the aluminum recycling business for more than 100 years. And through the products, technologies, and services of both companies, we will contribute to the realization of sustainability.

Alba Appoints Seasoned Finance Leader Ricardo Fontes Santana as Chief Financial Officer.

Aluminium Bahrain B.S.C. (Alba), the world’s largest single-site smelter, announced the appointment of Ricardo Fontes Santana as its new Chief Financial Officer (CFO), effective 15 August 2024.

A seasoned finance executive with over 25 years of global experience, Santana brings a wealth of knowledge in the metals and mining industry. His distinguished career includes leadership roles at industry giants such as Sohar Aluminium, South32, ESSILOR, BHP Billiton, and Shell, spanning diverse geographies including Brazil, Australia, Singapore, The Netherlands, Portugal, and Oman.

“We are delighted to welcome Ricardo to the Alba family,” said Khalid Al Rumaihi, Chairman of Alba’s Board of Directors. “His deep-rooted expertise in the global industrial sector, coupled with a proven ability to navigate complex financial landscapes, makes him an invaluable addition to our team.

We are confident that his leadership will contribute significantly to Alba’s growth journey.”

Ali Al Baqali, Alba’s Chief Executive Officer, added, “Ricardo’s appointment underscores our unwavering commitment to assembling a world-class leadership team. His impressive history of delivering exceptional financial performance and executing strategic initiatives aligns perfectly with Alba’s ambitious vision.”

Expressing his enthusiasm for the new role effective 15 August 2024, Ricardo Fontes Santana, stated:

“I am honoured to join the Alba Executive team and contribute to the Company’s ongoing success. By leveraging my financial expertise and collaborating closely with the leadership team, I am confident in our ability to drive sustainable growth, enhance shareholder value, and consolidate Alba’s position as a global industry leader."

Santana holds an MBA in Finance and Controlling from Universidade Federal Fluminense and has completed executive education programmes at the Judge Business School, University of Cambridge, and the Kellogg School of Management, Northwestern University. He is also certified in Investor Relations by the UK’s IR Society.

Alba Expands OJT Programme to Empower Bahraini Youth

Aluminium Bahrain B.S.C. (Alba) is reinforcing its commitment to developing Bahraini youth through the expansion of its On-the-Job Training (OJT) programme. Alba’s CEO Ali Al Baqali emphasised this dedication during a meeting with OJT participants on 05 August 2024 at the Company’s Oasis Hall.

Since the start of 2024, Alba has provided practical, hands-on experience to 215 students from local and international universities, with a notable 42% female representation. The programme encompasses all company functions, from operations to administration.

This summer, Alba witnessed an 86% surge in OJT participants, with 149 students compared to the previous year's 80. Alba has achieved this expansion by forging strong partnerships with local universities, offering students invaluable industrial exposure and preparing them to become key contributors to Bahrain’s economy.