Qamco posts nine-month net profit of QR12.3mn
October 22 2020 09:26 PM
Qamco's share of revenue shrank 14% year-on-year to QR1.6bn.
Qamco's share of revenue shrank 14% year-on-year to QR1.6bn.

Qatar Aluminium Manufacturing Company (Qamco), a 50% joint venture (JV) partner in a smelter that produces premium quality aluminium products, has reported net profit of QR12.3mn, translating into earnings per share (EPS) of QR0.002 in the first nine months (9M) of 2020.
Qamco's share of revenue shrank 14% year-on-year to QR1.6bn. The 9M performance continued to be impacted by external macroeconomic factors and also due to the pandemic-led slowdown in major global industries across the automotive, transport jets and construction sectors.
Sales volume was however marginally up 1%, as Qamco’s JV swiftly shifted the production to standard ingots, whereas, the demand for premium aluminium products and alloys used by various industries declined.
“Despite of the macroeconomic headwinds affecting the global markets, Qamco continued to rely on its core strengths, based on which its JV managed to remain profitable in a market where global aluminium prices continued to show downwards trends amid unprecedented challenges posed to businesses globally due to Covid-19 pandemic," said Abdulrahman Ahmad al-Shaibi, Qamco chairman.
The weakened demand on the back of economic slowdown and continued production surplus negatively affected the selling prices in 2020. Although, there were some recoveries in prices in the latter part of the third quarter, the overall price sentiments remained negative throughout the 9M period.
Its JV’s average selling prices fell 16% year-on-year, thus “negatively” affecting the net profits in during the 9M period. This was partially offset by the sales volumes, which positively contributed QR20mn.
Qamco’s share of joint venture’s Ebitda (earnings before interest, taxes, depreciation and amortisation) stood at QR439mn, down 15% year-on-year; but Ebitda margins was resilient in the current turbulent market conditions and stood at 27.3% against 27.5% the year-ago period.
The company’s JV was able to successfully contain its raw materials, energy, manpower and other direct costs by 12%. The overall decline in cost of goods sold contributed QR191mn positively to the 9M net profits.
Its JV has implemented various optimisation measures to cut controllable operating costs and defer some capital expenditures, enabling it to optimise its overall costs and conserve cash.
Qamco’s share of debt in the JV was down 8% to QR2.2bn, mainly due to principal repayment during the period.
Qamco’s financial position continues to remain robust despite several macroeconomic headwinds, with the liquidity reaching QR670mn in cash and bank balances (including proportionate share of cash and bank balances of the joint venture), after accounting for dividend payments for 2019.
Qamco’s JV generated positive share of operating cash flows of QR552mn, down 43%; with a share of free cash flows of QR346mn, up 34% against the same period of 2019.



There are no comments.

LEAVE A COMMENT Your email address will not be published. Required fields are marked*
MORE NEWS

HAPPENING IN DOHAMore