Dear Shareholders,
On behalf of the Board of Directors, I am pleased to
present Aluminium
Bahrain B.S.C. (Alba)’s Annual
Report for 2023.
I would like first to express my thanks to His Majesty
the King of Bahrain, King Hamad bin Isa Al Khalifa and
His Royal Highness the
Prime Minister Prince Salman
bin Hamad Al Khalifa for placing their faith in me to
lead as the Chairman of the Board of one of the
world’s
largest aluminium smelters. I take this
opportunity to thank our valued shareholders for their
continued confidence in our Company.
I am honoured to lead this organization towards more successes along with my fellow Directors at the Board.
Financial Performance
2023 was a year defined by global economic headwinds.
Geopolitical tensions, rising interest rates and
inflation, as well as supply chain
disruptions
contributed to a volatile market environment with
fluctuating LME prices (17% drop year-over-year) and
premiums (35%
drop year-over-year). Despite these
challenges, the Company’s robust operational performance
demonstrates its resilience and potential
for
stronger financial results in a more favorable
environment.
Key Performance Metrics
1,620,665 metric tonnes
(+2.5%
YoY)
1,603,011 metric tonnes
(+2.2%
YoY)
68% of Total Sales
(vs. 66% in
2022)
US$804 million
driven by lower
LME
prices and premiums
US$314 million
driven by lower
EBITDA
Our financial performance enabled us to reward our shareholders with good returns: we have paid in August 2023 an interim dividend of Fils 13.28 per share and a final dividend of Fils 15.9 per share in March 2024 which corresponded to 35% Dividend Payout Ratio.
Beyond the Bottom Line: Driving Progress for our Environment
Alba’s achievements extend beyond financial results. We are a frontrunner in sustainable aluminium production through our impactful initiatives in Environment, Social, and Governance (ESG). Focusing on three core areas – Decarbonization, Green Energy & Aluminium, and Circular Economy & Secondary Aluminium – Alba addresses environmental challenges. Major projects continue to progress such as the Power Station 5 Block 4 Project with the arrival of M701JAC Gas Turbine (reducing greenhouse gas emissions) and the Solar Farm Project (utilizing clean energy) that consists of around 11,300 solar PV panels with a capacity of more than 6 Megawatts. In addition, our Spent Pot Lining (SPL) Treatment Plant (addressing hazardous waste) achieved impressive results; not only did it exceed its target by processing waste into 40,185 MT of valuable HiCal, but this production also surpassed the plant’s designed capacity of 30,000 MT – 35,000 MT.
Embracing a new era, Alba charts a course for a sustainable future with our Refreshed Strategy for 2024-2026. Cementing our role as a key contributor to Bahrain’s social, industrial, and economic development, we will accelerate our decarbonization efforts and align with the nation’s Net Zero Emissions objectives by 2060. This commitment to sustainability encompasses our entire operations, from sourcing to delivery.
Together We Rise
The road ahead may hold challenges, but Alba is built on resilience. Our forward-thinking approach will equip us to not only navigate headwinds but emerge stronger. In closing, I would like to express our sincere gratitude to the Government of the Kingdom of Bahrain and the Government of the Kingdom of Saudi Arabia for their unwavering guidance and support over the past decades. This continued partnership has been instrumental to Alba’s success and remains essential as we embark on this exciting new chapter. I am incredibly grateful to my fellow Board of Directors for their dynamic leadership; their guidance has been instrumental in steering Alba to a stronger and more successful position. I also extend my sincere appreciation to Alba’s Management Team for their unwavering support; and most importantly, my deepest thanks go to our exceptional employees, whose unwavering commitment is the very foundation of Alba’s growth and success.
Chairman of the Board
