Aluminium Bahrain B.S.C. (Alba), recognized as the world’s largest aluminium smelter on one site, reported a significant decrease in its financial results for the second quarter and first half of 2025 compared to the previous year. The company posted a profit of BD24.6 million (US$65.3 million) for Q2 2025, marking a 64% drop from BD68.5 million (US$182.2 million) in Q2 2024. Basic and diluted earnings per share were fils 17 for the quarter, down from fils 48 a year earlier.
Total comprehensive income for Q2 2025 stood at BD21.9 million (US$58.1 million), a decrease of 67% year-on-year, while gross profit fell by 54% to BD47 million (US$125.1 million). Despite these declines, revenue from contracts with customers rose by 7%, reaching BD434 million (US$1,154.4 million).
For the first half of the year, Alba reported a profit of BD42.7 million (US$113.5 million), down by 54% compared to H1 2024’s BD93 million (US$247.3 million). Total comprehensive income dropped by 59% to BD38.7 million (US$102.8 million), and gross profit decreased by 39%. However, revenue increased by 14% year-on-year to BD843 million (US$2,242 million).
As of June 30, 2025, total equity was nearly unchanged at BD1,924.4 million (US$5,118.2 million), while total assets declined slightly by 0.6%.
During an e-meeting held on August 5, Alba’s Board of Directors recommended an interim dividend distribution as at June 30, amounting to Fils 10.55 per share or approximately BD14.9 million (about US$40 million).
The global market context saw aluminium demand rise by about three percent year-on-year globally but with regional variations: China’s demand grew four percent while North America and Europe experienced decreases due to tariff uncertainties and high energy costs respectively; Middle East demand also fell.
On the supply side, growth was limited worldwide with only marginal increases noted in China and the Middle East; North American production contracted mainly due to reduced output from Canadian smelters.
Market balance data showed that slower Chinese production growth relative to consumption contributed to a global deficit both including and excluding China.
Aluminium prices averaged US$2,447 per tonne during Q2—down three percent from last year—with inventories falling sharply by two-thirds over the same period.
Operationally, Alba’s sales volume increased by more than three percent year-on-year in Q2 to reach over 411 thousand metric tonnes; value added sales made up seventy-six percent of shipments—a nine percent increase over last year.
Strategic initiatives included achieving savings close to its annual target under e-Al Hassalah and expanding its low-carbon product line EternAlTM with new offerings such as ‘EternAl-AC’. Alba also became the first Middle Eastern smelter to implement an AI-powered platform for operations management and migrated key systems onto SAP’s private edition cloud service.
Looking ahead, market uncertainty remains due primarily to ongoing tariffs despite recent price gains linked to currency fluctuations; modest supply growth is expected both inside and outside China.
Chairman Khalid Al Rumaihi commented: “Amidst global market headwinds, Alba stands resilient and focused. While our profitability has been tempered by external pressures, the continued growth in revenue and the remarkable rise in Value Added Sales to 76% reflect the strength of our vision and the agility of our operations.
The profitability gap compared to Q2 2024 is largely attributed to higher landed alumina prices in this period; without that distortion, our performance would’ve exceeded last year’s.”
Chief Executive Officer Ali Al Baqali stated: “Behind every number is the unwavering dedication of our people. In the face of market challenges, Alba has delivered good results driven by a culture that puts safety first and empowers excellence. Achieving 38 million safe working hours without LTI is a testament to this commitment. We are proud of our workforce and confident in our ability to navigate the road ahead, together and safely.”
A conference call will be held on August 6 for further discussion on these results and future priorities.
