ABU DHABI, July 29 Aluminium Bahrain
(Alba) said its second quarter net profit dropped by
almost half to 35.6 million Bahraini dinars ($95 million) on
lower metal prices and higher gas costs.
Aluminium prices on the London Metal Exchange dipped close
to $600 a tonne when compared with the same period last year,
according to the company.
Bahrain's state-run energy supplier also raised Alba's gas
supply costs by $0.75 per million British thermal units (mmbtu)
to $2.25/mmbtu on January 1.
The firm, which owns the world's fourth-largest aluminium
smelter, made a profit of 69.7 million dinars in the same
quarter of 2011, a statement published on the Bahrain bourse
"Without LME and gas impact, Alba was able to maintain its
intrinsic value," the company's chief executive Laurent Schmitt
said in an e-mailed statement.
Production for the second quarter inched up 1.7 percent
while sales remained stable.
One of the main priorities throughout the second quarter was
to work towards finalising a long-term contract to secure the
availability and price of gas beyond 2012 for the company's
sixth line expansion plan, the statement said.
Last week, Alba said it had hired BNP Paribas to
advise on financing options for its proposed $2.5 billion
The new line would add 400,000 tonnes annual capacity to its
current production of 881,000 tonnes a year and could be
completed by early 2015.
($1=0.3771 Bahraini dinars)
(Reporting By Maha El Dahan; Editing by Mike Nesbit)