Bahrain's Alba 2012 Profit Slumps 54% On Lower Prices
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Bahrain’s Alba 2012 Profit Slumps 54% On Lower Prices

Bahrain’s Alba 2012 Profit Slumps 54% On Lower Prices

Aluminium Bahrain blamed higher energy costs for the decline in income.

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Aluminium Bahrain (Alba), which owns the world’s fourth-largest aluminium smelter, posted a 54.4-per cent slump in 2012 profits on Thursday, citing lower prices for the decline.

Alba reported net profit of $256 million for 2012, down from $562.1 million in 2011, according to a bourse filing in Bahrain.

The company also blamed higher energy costs for the decline in income. Sales fell 16 per cent year-on-year to $1.98 billion in 2012.

Aluminium cash prices at the London Metals Exchange dropped 16 per cent in 2012 with an average cash price of $2,019 per metric tonne versus $2,398 per metric tonne in 2011, Alba said.

The country’s state-run energy supplier had raised the price of gas it sells to Alba at the beginning of 2012 by $0.75 per million British thermal units (mmbtu) to $2.25/mmbtu, Tim Murray, the current chief executive, said in February last year.

Murray, who was previously chief finance and supply officer, assumed the CEO role in October.

Alba said on Thursday its board had recommended a dividend of $52 million for the second half of 2012, taking the full-year total to $105 million or $0.74 per share.

In December, Alba said it had picked Bechtel Canada to conduct the feasibility study for its proposed $2.5 billion expansion plan to add a sixth production line. The move will increase annual capacity by 400,000 tonnes from its current production of 881,000 tonnes a year.

BNP Paribas is the financial adviser on the project, which is expected to be completed in 2015.


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