Bahrain’s Alba cites collapse in aluminium prices as Q1 profit falls 89%

Aluminium Bahrain (Alba), owner of one of the world’s largest aluminium smelters, reported a 88.6 per cent fall in first-quarter net profit on Monday as a result of a collapse in aluminium prices.

Alba’s net income for the three months to March 31 was BHD 4.2m ($11.22m) it said in a statement. This compares with a profit of BHD 37.2m in the prior-year period.

Net income included extraordinary non-recurring items amounting to BHD 54,263 for the first quarter, compared with BHD 396,981 the previous year, as a result of changes in its accounting standards, it said.

Alba in February cut its dividend for 2015 to free up cash for its expansion project, expected to cost $3.5bn and raise its annual output to 1.45 million tonnes.

The firm appointed Bechtel as the contractor for the Line 6 expansion in April.

Alba’s chief executive said in November it would reach its target to cut cash costs by $150 per tonne by January 2016, although the firm was looking to make further savings.