(MENAFN- The Peninsula)
The Peninsula
Doha: Qatar Aluminium manufacturing Company Q.P.S.C. (“QAMCO” or“the Company”; QE Ticker: QAMC), a 50 percent joint venture partner in Qatar Aluminium Company (Qatalum), yesterday reported a net profit of QR237m for the six-month period ended 30 June 2024, with an earnings per share (EPS) of QR0.042.
The macroeconomic environment for the overall aluminium market started to stabilize during second quarter of 2024 after being volatile for most of 2023 and first quarter of 2024.
Several factors led to challenging supply-demand dynamics of primary aluminium which resulted in volatilities in prices during the period.
This included tightened monetary policies, regional geo-political tensions in the Red Sea and weakened consumer demand stemming from relatively high inflation and interest rates.
QAMCO reported a net profit of QR 237m in H1 2024, compared to QR240m for the same period of last year, with an earnings per share (EPS) of QR 0.042 compared to QR 0.043 for H1 2023.
Share of JV's revenue reached QR1.5bn in H1 2024, compared to QR1.6bn in the same period last year.
However, EBITDA margin stood steady at 33 percent in H1 2024 compared to 31 percent in H1 2023.
QAMCO's financial results in H1 2024 was overshadowed by an overall decline in average realised selling prices during the period compared to the same period of last year, which was partially offset by improved operating costs and increase in sales volumes.
Average realised selling price witnessed a decline of 9 percent compared to last year reaching $2,485/MT in H1 2024 amid macroeconomic headwinds.
This had an impact of QR154m to the net profit in H1 2024 compared to the same period of last year.
Additionally, financial results were also impacted by increase in finance costs due to higher interest rates. Results were partially offset by improved sales volumes, which increased by 4 percent mainly driven by improved demand for both foundry alloys and extrusion ingots compared to the same period of last
year.
Increase in sales volumes contributed QR56m positively in H1 2024 results, compared to H1 2023, despite challenges faced in shipments disruptions in the Red Sea that caused various delays during the first quarter of 2024.
QAMCO's Q2 2024 net profit increased by 77 percent compared to previous quarter reaching QR151m, mainly driven by higher sales volume (up 27 percent ), coupled with improved average selling prices realized in Q2 2024 (up 4 percent).
Increase in quarterly sales volume can be attributed to improved demand for both foundry alloys and extrusion ingots during the quarter, stemming from gradual recovery of aluminum market. Increase in sales volumes contributed QR171m positively to the bottom-line profitability in Q2 2024, compared to the previous quarter.
According to relevant regulations, the interim cash dividends will be paid to shareholders as at the close of trading on 14th August 2024. Edaa will handle the payment of interim dividends in accordance with applicable rules and regulations.
QAMCO will host an IR earnings call with investors to discuss its results for H1 2024, business outlook and other matters, on Sunday, 11th August 2024 at 1:30 p.m. Doha time.
The IR presentation that accompanies the conference call will be posted on the 'financial information' page within the Investor Relations section at QAMCO's website.
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