Aluminium Bahrain’s (Alba) net income for the third quarter of 2014 jumped to $78 million compared to only $13 million for the same period of 2013.The large increase in net income in third quarter was due to strong operational performance on the back of higher metal prices, according to the Bahraini firm, which operates one of the world’s largest aluminium smelters.
However, the company's net income for the first nine months of this year declined to $165 million versus $176 million during the same period last year, due to lower unrealised derivative gains in 2014, it said.
Alba was able to increase its sales volume by 2.3 per cent year-on-year, while production was up by 1.5 per cent on the back of sustained operational performance.
Total sales for the third quarter of 2014 were worth $593 million, compared to $488 million for the same period in 2013. Total sales for the nine months of 2014 totalled $1.6 billion versus $1.5 billion during the same period in 2013, on the back of higher LME prices and physical premiums.
Sales of value-added products represented 67 per cent in Q3 2014 of total shipments versus 65 per cent in Q3, 2013, the company said. The board recommended an interim cash dividend of 12 fils per share, which amounts to a total of $45 million. Commenting on Q3 results, chief executive Tim Murray said: "Alba’s sound financial performance in the third quarter of 2014 was driven by strong operational performance and gains from the marketing organisation." Alba chairman Shaikh Daij bin Salman bin Daij Al Khalifa added: "Once again, Alba was able to deliver exceptional results. As we head into the end of the year, the company is targeting to exceed the record production achieved in 2013."