Aluminium Bh.s Regulatory News (ALBH)

Alba Reports H1 and Q2 2013 Results

·; Alba improves H1 2013 Net Income despite lower LME prices

·; Aluminium physical demand remains healthy

·; Interim Dividend of BD 19.7 million (US$ 52.5 million) proposed by the Board

Q2 2013 Industry Highlights:

·; Aluminium demand remains healthy with world consumption up by 4.8% year-on-year (YoY). Asian consumption up by 7% YoY propelled by Thailand (+21% YoY) and China (9% YoY). Demand in North America up by 2% YoY supported by higher construction and automotive production. MENA demand remains firm thanks to large infrastructural projects while consumption in Europe has remained stable

·; World production rose by 4.3% YoY and western producers continue to suffer from lower LME price and higher energy cost thus leading to further capacity cuts

·; Aluminium cash prices at the London Metals Exchange dropped by 7% in Q2 2013 with an average cash price of US$ 1,834 mt versus US$ 1,977 mt in Q2 2012

H1 2013 Alba Highlights:

·; Alba increased its sales by 1.9% YoY thanks to a focused marketing strategy while production rose by 2% YoY on the back of strong operational improvements

·; Physical premiums remain strong and Value-Added Products accounted for 66% of total shipments versus 65% in H1 2012

·; Pot Line 5 upgraded to AP37 technology following the increase in line current to 370 kA

·; AlbaSafeWay Programme on pace with a focus on contractor safety awareness plant wide

H1 & Q2 2013 Financial Results:

Alba's sales for the first six months of 2013 were BD 382.6 million (US$ 1.017 billion) versus BD 383 million (US$ 1.018 billion) in H1 2012, down by 9 basis points on the back of lower LME prices. Sales for the second quarter of 2013 reached BD 195.5 million (US$ 520 million), down by 53 basis point as compared to BD 196.5 million (US$ 522.7 million) for the same period in 2012.

The company posted a Net Income of BD 61.2 million (US$ 163 million) for the first half of 2013, up by 7% from BD 56.9 million (US$ 151 million) for the same period in 2012 due to strong overall operational performance, which was partially offset by lower LME prices. Net Income for the second quarter of 2013 stood at BD 20.7 million (US$ 55 million), a drop of 42% from BD 35.6 million (US$ 95 million) driven by unrealized derivative gains as well as low LME prices.

The Board has recommended an Interim Cash Dividend of 14 Fils per share, which is BD 19.7 million (US$ 52.5 million).

2013 Alba Priorities:

·; Towards a Zero Accidents work environment

·; Leverage cost improvements through Operational Excellence programme

·; Continued focus on bolstering talent management

·; Maintain Value-Added Sales and leverage high physical premiums for the remainder of 2013

·; Gear-up for Pot Line 6 expansion project

Aluminium Bahrain B.S.C. (Alba) released its first half and second quarter 2013 results during a meeting of the company's Board of Directors on Sunday, July 28, 2013.

The Chairman of Alba's Board of Directors, Mahmood Hashim Al Kooheji said:

"Amid the downtrend in LME prices, the company closed the first six months of 2013 with a solid bottom line underpinned by higher productivity levels.

I would also like to thank the Executive Management Team for improving overall safety performance in the plant."

Commenting on the first half of 2013 results, Alba's Chief Executive, Tim Murray added:

"Despite challenging global macroeconomic conditions coupled with lower LME prices, Alba was able to deliver a healthy financial performance supported by strong operational performance.

Our focus on Continuous Improvement Programme and Operational Excellence initiatives will enable the company to maintain its competitive position and improve its overall performance."

Alba's Chief Executive Officer, Tim Murray, Chief Financial Officer, Ali Al Baqali, Chief Operations Officer, Isa Al-Ansari and Investor Relations Manager, Eline Hilal will be on a road show with investors in Dubai, New York City & Boston to discuss the company's performance for the First Half and Second Quarter of 2013 as well as outline Alba's priorities and plans for the remainder of the year.

ENDS

Note:

Aluminium Bahrain B.S.C. (Alba) consistently ranks as one of the largest and most modern aluminium smelters in the world. Known for its technological strength and innovative policies, Alba enforces strict environmental guidelines, maintains high track record for safety, and is widely regarded as one of the top ten performers on a global scale.

It supports numerous community oriented programmes and social activities that have underlined its status as one of Bahrain's leading industrial organisations that remains committed towards upholding its corporate social responsibilities.

Alba's inception marks the beginning of Bahrain's strategy to diversify its economic base and reduce its dependence on oil. The aim was to establish an industry that would provide valuable export earnings, develop the country's resources and create training and employment opportunities for a large number of Bahrainis. Alba was therefore incorporated by Charter in 1968 and officially commenced operations in 1971 as a 120,000 tonnes per annum smelter.

Alba today produces more than 890,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium. Around 50 per cent of its output is supplied to Bahrain's downstream aluminium industry, with the rest exported to regional and international customers in the Middle East, Europe, Far East, South East Asia, Africa, and North America.

The Alba plant comprises five reduction lines, cast houses, a dedicated carbon plant, a 550,000 mtpa coke calcining plant, a water desalination plant, fume treatment plants, a marine terminal, and a 2,265 MW power plant, consisting of 4 power stations. The plant also features a 10 hectare 'green' oasis, with more than 7,600 trees and shrubs, a fruit and vegetable garden, and an artificial lake.

The entire plant operates to the Environmental Management System standard ISO 9001:2000 and the Casthouses and Marketing are also operating to the ISO 9002 Quality Management System.

Alba's early success established a blueprint for other non-oil industries to follow, including a thriving downstream aluminium industry. Today, Alba is a major contributor to the social, industrial and economic development of the Kingdom of Bahrain, employing over 3,000 people, of whom around 87 per cent are Bahrainis.

The shareholders of Alba are Bahrain Mumtalakat Holding Company (69.38%), SABIC Investment Company (20.62%) and the General Public (10%).

For further details, please contact Investor Relations Manager, Eline Hilal

Tel: (973) 17 835100 (direct)

Fax: (973) 17 833822

E-mail: eline.hilal@alba.com.bh

Date: July 28, 2013