On behalf of the Board of Directors, I am pleased to present Aluminium Bahrain B.S.C. (Alba)’s Annual Report for 2022. I am proud to state that Alba had another successful year: we are pleased to be one of the top contributors to the economic and social development of the Kingdom of Bahrain, while maintaining profitability, exceeding production targets and continuing to score higher in areas of Environment, Social and Governance (ESG).
The choices we have made since the full commissioning of our game-changer, Line 6 Expansion Project, in 2019 coupled with the execution of our strategic priorities have been key to delivering a strong financial performance as well as allowed us to navigate through the various market challenges and COVID-19.
While uncertainty and market volatility defined 2022, we were able to have an unmatched performance across key performance metrics: an all-time production of 1.6 million metric tonnes, EBITDA at record levels of US$1.502 billion with another record Profit of US$1.107 billion.
Such performance has allowed us not only to accelerate servicing our loans but also increase the cash returns to our shareholders: we have paid in September 2022 an interim dividend of Fils 31.88 per share totaling BD45,122,697 and final dividend of Fils 85.7 per share in March 2023 amounting BD121,306,000.
A key initiative in our race to Net Zero, Power Station 5 Block 4 will accelerate the Company’s ESG transition and enable Alba to reduce its Greenhouse Gas (GHG) emissions by 0.5X once completed in Q4 2024 as we embrace Bahrain’s objectives to reach Net Zero by 2060. Block 4 will add 680.9 megawatts (MW) to Power Station 5 bringing its power output to nearly 2.5 gigawatts (GW). We have successfully achieved the financial close for Power Station 5 Block 4 (US$225 million) by relying on China Export and Credit Insurance Corporation (“SINOSURE”) as well as carried out the first foundation concrete pour for the Block 4 Project, thus debuting the kick-off of construction activities and other site works.
Alba became the first Company in Bahrain to refinance its existing syndicated loan of c. US$1.247 Billion tied to 3 sustainability linked targets: Total Waste Recycled (Solid Waste), Training Hours and Lost Time Injury Frequency’s Incident Count.
With respect to our proposed Line 7 Expansion Project, we awarded International Bechtel Co. Ltd. (Bechtel) to conduct the Feasibility Study, which will provide a comprehensive assessment of all factors to determine the viability of this Project. Expected to have a production capacity within the range of 540,000 metric tonnes per annum, Potline 7 underlines our ambition to grow organically and will further cement our position as one of the largest environment friendly smelters in the world.
In conclusion, on behalf of the Members of the Board of Directors and all Alba employees, I take this opportunity to express my sincere thanks and gratitude to His Majesty King Hamad bin Isa Al Khalifa, the King of the Kingdom of Bahrain, and HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, for their continuous support towards Alba, and for taking our beloved Kingdom’s status higher on various fronts
I remain grateful to my fellow Board of Directors for their support in Alba’s journey and thank Alba’s Management Team for their commitment towards developing Alba from within. I extend special thanks as well to Bahrain Mumtalakat Holding Company and SABIC Industrial Investment Company (SIIC) for their valuable and unwavering support.
Most importantly, I applaud each and every one of our employees and contractors’ workforce for embracing our values and their commitment to operating a sustainable and profitable Company all the while generating value for our shareholders and stakeholders
As we sail in 2023, I am confident that we will be able to deliver on our targets to build a strong Alba through our focused approach on lean management, ESG and creating long-term shareholder value.