An overall growth in average realised selling prices and sales volumes led Qatar Aluminum Manufacturing Company (Qamco) – a 50% joint venture partner (JV) in Qatar Aluminum Company (Qatalum) – to report a record net profit of QR919mn in 2022, with an earnings per share (EPS) of QR0.165.
After reviewing current year’s robust financial performance, with the present and forecasted liquidity position, and considering current and future macroeconomic conditions, business outlook, capital expenditure, long term loan repayment plan; the board proposed a dividend of QR0.09 per share, representing 9% of par value resulting in a dividend yield of 5.9% on the closing share price as of December 31, 2022.
The total annual dividend distribution of QR502mn for 2022 represents a payout ratio of 55% of current year’s net earnings.
The share of JV’s revenue rose 28% to QR3.99bn in 2022. Earnings before interests, taxes, depreciation and amortisation (Ebitda) increased by 6% to QR1.46bn with an Ebitda margin of 37%.
The average realised selling price shot up 24% year-on-year to $3,279 per metric tonne and contributed QR748mn positively to the net profit for 2022.
Production levels remained relatively flat even as sales volumes increased by 3% versus last year, due to comparatively higher sales of standard ingots versus last year.
“While macroeconomic context remained uneven, we continued our focus on operational excellence, cost optimisation, operational flexibility, safety & sustainability, which resulted in an excellent set of financial results," said Abdulrahman Ahmad al-Shaibi, chairman of Qamco.
Cost of goods sold for the current year remained higher year-on-year, mainly on higher raw material costs and unfavourable inventory movements due to higher sales volumes. On overall basis, the increase in cost of goods sold contributed QR697mn negatively to the net profits in 2022.
Qamco’s financial position continued to remain robust with liquidity position reaching QR2.07bn in the form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).
During the financial year ended 2022, Qamco’s JV generated share of operating cash flows of QR1.32bn, with a share of free cash flows of QR1.09bn.
During the year, Qamco JV incurred QR229mn (Qamco’s share) on account of capex outlays, which included routine operations, such as pot relining and other maintenance pertaining to power plant and anode plant.
The capex programmes will support JV’s drive for operational efficiency, while reducing carbon footprints.
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