Alba Reports its H1 2016 Financial Results

Media Release - July 25, 2016

Alba Reports its H1 2016 Financial Results

Q2 2016 Industry Highlights

· Global aluminium demand continues to grow with world consumption surge by 5% Year-on-Year (YoY) whereas world supply up by 2% YoY

· Global physical premiums floating at lower range

· LME inventories at 2.4 million metric tonnes (mt) in June

· The LME cash average at US$ 1,571/t in Q2 2016 compared to US$ 1,769/t for the same period in 2015

Q2 2016 Alba Highlights

· Launch of Summer 'Safety Convoy Campaign'

· Sales volume up by 3.2% YoY (239,739 metric tonnes)

· Value-Added Sales averaged 55% of total shipments in Q2 and exceeded 60% for the month of June

· Project Titan - Phase II on track with Year-To-Date (YTD) savings of US$33 per mt

Q2 & H1 2016 Financial Results

The Company's top-line and bottom-line for the first half of 2016 were driven primarily by the dual collapse of LME prices and premiums.

Alba reported Total Sales of BD 165.7 million (US$ 441 million) in the second quarter of 2016, a drop of 17% YoY, compared to BD 199.4 million (US$ 530 million) for the same period in 2015; while Total Sales in the first half of 2016 stood at BD 322.2 million (US$ 857 million), down by 21% YoY, versus BD 405.9 million (US$ 1,080 million) in H1 2015.

The Company posted a Net Income of BD 16.3 million (US$ 43 million) in the second quarter of 2016, down by 45% YoY compared to BD 29.8 million (US$ 79 million) in Q2 2015. Net Income for the first half of 2016 stood at BD 20.5 million (US$ 55 million) versus BD 67.0 million (US$ 178 million) for the same period in 2015.

2016 Alba Priorities:

· Continuous focus on safety initiatives & talent management

· Deliver on Project Titan - Phase II

· Increase Value-Added Sales

· Increase Line 4 production by implementing larger anode

· Line 6 progressing as planned

- Award power station contracts & finalise syndicated loan tranche by Q3 2016

Aluminium Bahrain B.S.C. (Alba) announced the release of its second quarter and first half of 2016 Financial Results on Monday July 25, 2016.

Commenting on Q2 & H1 2016 Financial Results, the Chairman of Alba's Board of Directors, Daij bin Salman bin Daij Al Khalifa:

"The industry is facing tough times; however, Alba continues to deliver solid profitability which further strengthens our position for Line 6 financing.

I would like to thank all the employees of Alba and our contractors for their continuous support towards Safety.

We, also, look forward to award the EPC contract for Power Station 5 in the third quarter of 2016."

Alba's Chief Executive Officer, Tim Murray added:

"Alba continues to push hard on managing its cost base which has resulted in strong free cash flow. The success of our performance is driven by our dedicated workforce whom I would like to thank for all their efforts."

Alba's Management will be holding a conference call on Tuesday, July 26, 2016 to discuss Alba's performance for the second quarter and first-half of 2016 Financial Results as well as outline the company's priorities for the remainder of this year. 

http://www.rns-pdf.londonstockexchange.com/rns/1378F_-2016-7-25.pdf 

ENDS

Photo Caption:

1) Alba's Chairman, Daij Bin Salman Bin Daij Al Khalifa

2) Alba's Chief Executive, Tim Murray

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 960,000 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:

Line 6 Expansion Project will make Alba the world's largest single-site aluminium smelter. Expected to begin production by early 2019, this Project will boost the per-annum production by 540,000 metric tonnes, bringing the total production capacity of Alba to around 1.5 million metric tonnes per year.

With a CAPEX of US$ 3.5 billion, the Line 6 Expansion Project is one of the largest brownfield developments in the region and involves the construction of a sixth pot line, a 1,350 MW power station and other industrial services.

Bechtel is the EPCM contractor for the Line 6 Expansion Project, which will be utilising EGA's proprietary DX+ Ultra Technology. J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors of this Project.

The Bankable Feasibility Study was completed by Bechtel in December 2014. In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

The Line 6 Expansion Project will be a significant economic boost for the Kingdom of Bahrain as it will be creating many co-investment opportunities through local and foreign aluminium investments as well as significant employment opportunities for the nationals.

For further details, please contact:

Eline Hilal

Manager - Investor Relations, Public Relations &

Corporate Secretary

Investor Relations & Public Relations Department

Tel: (973) 1783 5100

Mob: (973) 39907255

E-mail: eline.hilal!@alba.com.bh

Website: www.albasmelter.com.bh

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