Qatar Aluminium Manufacturing Company (Qamco) reported a net profit of QR95mn; translating into earnings-per-share of QR0.017 for 2020.
The company has proposed a dividend distribution of QR195.3mn, representing a payout ratio of 206% of 2020’s net earnings, equivalent to 3.5% cash dividend or QR0.035 per share.
Qamco’s share of revenue amounted to QR2.2bn in 2020. Sales volumes were marginally higher than last year, as its joint venture (JV) swiftly shifted the production to standard ingots (SI), as the demand for value added products (VAP) and alloys used by various industries declined during peak of pandemic due to lockdowns and lack of industrial activity.
The channelling of production volumes swiftly from VAP to SI supported in ensuring achieving maximum sales volumes. Though, lower VAP volumes resulted in lower realised LME premiums.
Given the demand for VAP showed signs of recovery, especially towards end of third quarter of 2020, Qamco’s JV successfully shifted the product mix back to VAP from SI in the subsequent quarter, resulting in higher premiums and better margins for the quarter.
Profitability remained under pressure mainly on lower revenues due to a 12% decline in selling prices, and contributed QR289mn negatively to the net profits for the review period. This was partially offset by the sales volumes, which positively contributed QR10mn to net profits in 2020.
The overall cost of goods sold remained lower on declining raw material prices, energy costs and cost optimisation initiatives helped to realise savings in staff costs, plant maintenance and technical services costs.
On overall basis, decline in cost of goods sold contributed QR255mn positively to the net profits in 2020.
Despite momentous macroeconomic headwinds since the outbreak of Covid-19 pandemic, Qamco chairman Abdulrahman Ahmad al-Shaibi said it continued to rely on cost efficiency, operational excellence and flexibility, while maintaining same levels of production and sales, in a market where some global players depict sluggish trends due to disruptive environment apart from stymied demand and declining prices of aluminium.
"Going forward, banking on the efficient operational excellence in all key business areas will successfully safeguard against market volatilities, while ensuring our flexible approach towards our supply chain and marketing capabilities, to better position us for our long-term goals,” he added.
Qamco's total assets stood at QR5.8bn. Its share of net debt in the JV increased marginally by QR5mn during 2020, to reach QR1.9bn at the end of December 31, 2020, after considering share of cash and bank balances amounting to QR332mn. Share of debt declined by 8% on repayment of principal debt amounting to QR222mn.
Qamco’s financial position continued to remain robust despite several macroeconomic headwinds, with the liquidity position reaching QR740mn in cash and bank balances (including proportionate share of cash and bank balances of the joint venture, after excluding restricted cash balance pertaining to dividend payable).
During the year, Qamco's JV generated positive share of operating cash flows of QR684mn, marginally down 1% compared to 2019, with a share of free cash flows of QR226mn.
Qamco’s share of revenue amounted to QR2.2bn in 2020. Sales volumes were marginally higher than last year, as its joint venture (JV) swiftly shifted the production to standard ingots (SI), as the demand for value added products (VAP) and alloys used by various industries declined during peak of pandemic due to lockdowns and lack of industrial activity.
The channelling of production volumes swiftly from VAP to SI supported in ensuring achieving maximum sales volumes. Though, lower VAP volumes resulted in lower realised LME premiums.
Given the demand for VAP showed signs of recovery, especially towards end of third quarter of 2020, Qamco’s JV successfully shifted the product mix back to VAP from SI in the subsequent quarter, resulting in higher premiums and better margins for the quarter.
Profitability remained under pressure mainly on lower revenues due to a 12% decline in selling prices, and contributed QR289mn negatively to the net profits for the review period. This was partially offset by the sales volumes, which positively contributed QR10mn to net profits in 2020.
The overall cost of goods sold remained lower on declining raw material prices, energy costs and cost optimisation initiatives helped to realise savings in staff costs, plant maintenance and technical services costs.
On overall basis, decline in cost of goods sold contributed QR255mn positively to the net profits in 2020.
Despite momentous macroeconomic headwinds since the outbreak of Covid-19 pandemic, Qamco chairman Abdulrahman Ahmad al-Shaibi said it continued to rely on cost efficiency, operational excellence and flexibility, while maintaining same levels of production and sales, in a market where some global players depict sluggish trends due to disruptive environment apart from stymied demand and declining prices of aluminium.
"Going forward, banking on the efficient operational excellence in all key business areas will successfully safeguard against market volatilities, while ensuring our flexible approach towards our supply chain and marketing capabilities, to better position us for our long-term goals,” he added.
Qamco's total assets stood at QR5.8bn. Its share of net debt in the JV increased marginally by QR5mn during 2020, to reach QR1.9bn at the end of December 31, 2020, after considering share of cash and bank balances amounting to QR332mn. Share of debt declined by 8% on repayment of principal debt amounting to QR222mn.
Qamco’s financial position continued to remain robust despite several macroeconomic headwinds, with the liquidity position reaching QR740mn in cash and bank balances (including proportionate share of cash and bank balances of the joint venture, after excluding restricted cash balance pertaining to dividend payable).
During the year, Qamco's JV generated positive share of operating cash flows of QR684mn, marginally down 1% compared to 2019, with a share of free cash flows of QR226mn.