Alba plans to achieve its 2020 aluminum production target of 1.54mn mt by the end of the year and will look at acquisition opportunities to strengthen its alumina supply chain.
The aluminum maker indicated in its Q3 2020 earnings report that it was looking to expand into new markets next year and, as part of the same initiative, will establish a Singaporean branch later this year.
The Bahrain-based company said the aluminum market at large will be shaped by the pandemic, especially if, in light of rising worldwide COVID-19 infections, there’s a second round of lockdowns. In the interim, it predicted that the aluminum market will likely face headwinds stemming from oversupply.
The company estimated that in Q3 2020 global aluminum consumption slipped by 4pc compared to last year and that, apart from the pandemic, factors like Brexit’s delay, the US-China trade war, and the US presidential election affected demand in the aluminum market.
Last quarter, Alba’s aluminum production was flat at 385,638mt compared to the same quarter last year, while its sales increased by 5pc to 393,177mt during the same period.
The company said its EBITDA in Q3 was hampered by low aluminum prices on the LME despite higher sales. In January-September 2020, Alba’s EBITDA increased by 61pc to $268mn compared to the same period in 2019 and was up by 30pc to $75mn in Q3 from Q3 2019.
The company reported a net loss of $59mn for the nine months ended September 30, and a loss of $31mn in Q3 2020 because of higher financial charges and depreciation.