Aluminium Bh.s Regulatory News (ALBH)

Media Release - October 29, 2017

Alba Q3 2017 Net Income Surges 80% YoY

Q3 2017 Industry Highlights

· As the demand growth for Aluminium remains healthy, the world consumption rose by 6% Year-on-Year (YoY). Asian demand continues to be strong, up by 6% YoY, supported by Chinese Consumption (+7% YoY) while MENA demand went up by 4% YoY driven by infrastructure spending in Saudi Arabia (+11% YoY). Europe consumption remains firm, up by 4% YoY, led by steady demand across the transport and packaging sectors; North America demand up by 3% YoY driven by continued growth in auto and construction markets.

· World production up by 7.5% YoY led by the Chinese output (+13% YoY).

· LME inventories at 1.3 million metric tonnes in September

· Q3 2017 cash-average was US$ 2,012/t with LME ranging between US$ 1,877/t on July 12 and US$ 2,164/t on September 20.

Q3 2017 Alba Highlights

· Launch of 'Summer Challenge' Safety Campaign'

· Line 5 normalized and Alba sets the benchmark for speed of recovery

· Sales and production volume up by 0.5% YoY (247,540 mt) and 3% YoY (253,475 mt) respectively. Value-Added Sales averaged 59% of total shipments in Q3.

· Project Titan -- Phase II: YTD savings of US$ 65/mt (impacted by timing of Line 5 recovery)

· Line 6 Expansion Project on track with overall progress of 30% from inception till to-date [engineering advanced by more than 60% while contracts and procurement by more than 75%]

Q3 & 9 Months 2017 Financial Results

Alba's top-line and bottom-line for the third and 9 months of 2017 were driven by higher LME prices (an increase of 24% YoY) and the speed recovery of Line 5 operations.

Alba's Total Sales for the third quarter of 2017 jumped by 35% YoY to BD 235.3 million (US$ 625.8 million) versus BD 174.3 million (US$ 463.5 million) in Q3 2016. For the nine months of 2017, Total Sales stood at BD 605 million (US$ 1.609 billion), up by 22% YoY, versus BD 496.5 million (US$ 1.32 billion) for the same period in 2016.

The Company reported a Net Income of BD 25.8 million (US$ 68.5 million) in the third quarter of 2017, up 80% YoY, versus BD 14.3 million (US$ 38.1 million) in Q3 2016. The Net Income for the 9 months of 2017 rose by 98% YoY to BD 69 million (US$ 183.5 million) versus BD 34.8 million (US$ 92.6 million) for the same period in 2016.

2017 Alba Priorities

· Continuous Focus on Safety TomorrowLand Initiatives

· Deliver on Project Titan - Phase II

· Increase Value-Added Sales

· Line 6 on Schedule

o Secure Second Tranche of ECA-Covered Facility

o Award Remaining Packages

Commenting on Q3 & 9 Months 2017 Financial Results, the Chairman of Alba's Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, said:

"I would like to thank all Alba employees and contractors for restoring Line 5 safely.‎ 

As we move ahead, we also look forward to make solid progress in our flagship development - Line 6 Expansion Project".

Alba's Chief Executive Officer, Tim Murray added:

"Alba set a new benchmark on Line 5 recovery which translated into strong operational results.

I would also like to thank our employees and contractors for maintaining safe operations through a difficult summer."

Alba's Management will be holding a conference call on Monday October 30, 2017 to discuss Alba's performance for the third quarter 2017 Financial Results as well as outline the Company's priorities for the remainder of this year.

ENDS

About Alba:

Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 971,000 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.

Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company's shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).

 About Line 6 Expansion Project:

Alba's Line 6 Expansion Project is one of the largest brownfield developments in the region. Expected to begin production by January 1st 2019, this Project will boost the smelter's per-annum production by 540,000 metric tonnes, bringing its total production capacity to 1.5 million metric tonnes per year.

With a CAPEX of approximately US$ 3 billion, the Line 6 Expansion Project involves the construction of a sixth pot line utilising EGA's proprietary DX+ Ultra Technology, a 1,792 MW power station and other industrial services.

Bechtel is the EPCM contractor for the Line 6 Expansion Project smelter. For Power Station 5 (PS 5), GE and GAMA Consortium was awarded the EPC contract, while Siemens is the Power Distribution System contractor. J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project.

In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

Alba successfully closed a US$ 1.5 Billion syndicated term-loan facility comprising two tranches: Conventional Facility & and Islamic Facility in October 2016 as well as c. US$ 700 million Export Credit Financing (Euler Hermes and SERV-covered facilities) in July 2017. The Company is looking to secure the second tranche of the Export Credit Agency (ECAs) within the second half of 2017.

The Front End Engineering Design (FEED) study for the Project was completed in the first quarter of 2017 while the construction site-works have started in the second quarter of 2017 and will be completed by September 2017. Alba has laid the First Concrete in Potline 6 Foundation in May 2017 wherein the concrete foundations will reach 85,000 m3 upon completion by December 2018.

The Line 6 Expansion Project will make Alba the world's largest single-site aluminium smelter and be a significant economic boost for the Kingdom of Bahrain due to the many co-investment opportunities through local and foreign aluminium investments.

For further details, please contact:

Eline Hilal

Manager - Investor Relations & Corporate Secretary

Investor Relations Department

Tel: (973) 1783 5100 (direct)

Fax: (973) 1783 3822

E-mail: eline.hilal@alba.com.bh

Website: www.albasmelter.com

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