Qamco reports highest H1 net profit since incorporation
August 05 2021 11:15 PM
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The substantial improvement in the net profitability was on account of the improved global aluminium
The substantial improvement in the net profitability was on account of the improved global aluminium prices, linked to macro-economic recovery and supply constraints

SP, Doha

Qamco (Qatar Aluminium Manufacturing Company) has reported the highest half-yearly net profit of QR288mn at the end of June 30, 2021, reporting more than 19-fold jump year-on-year.
The substantial improvement in the net profitability was on account of the improved global aluminium prices, linked to macro-economic recovery and supply constraints
Qamco's share of revenue from the joint venture (Qatalum) amounted to QR1.35bn in the first six months of this year.
Its share of Ebitda (earnings before interest, taxes, depreciation and amortisation) from the JV stood at QR558mn, with an Ebitda margin of 41.72% in the first half (H1) of 2021 against 27.9% in the year-ago period.
"We benefited from a strong sequential macroeconomic recovery coupled with supply constraints, which translated into healthier demand for our premium products, resulting in an improved set of financial results, since Qamco’s incorporation," said Abdulrahman Ahmad al-Shaibi, chairman of Qamco.
While macro-conditions remained buoyant, it continued to rely on core business values, flexibility of operations, supported by efficient supply chain and persistent cost optimisation efforts, he added.
"Going forward, our competitive advantages coupled with our operational excellence, would position us better for our long-term goals,” he said.
Qamco’s JV continued efforts to manage its controllable cost via optimisation programme. Until H1, 2021, the JV’s realised cost savings were "in excess of expectations", via higher throughput and lowered operating cost expenditures, which reflected positively on JV’s operating cost base, while keeping the JV on the lower side of the cost curve among global peers.
Qamco's improved financial results were largely attributed to an overall growth in average realised selling prices in comparison to H1, 2020. The average realised selling price witnessed 26% increase and contributed QR292mn positively to the net profit in the review period.
Although sales volumes were slightly lower than last year, Qamco’s JV was successful in selling 100% of value-added products (VAP), and there were no sales of standard ingots during the current year. The shift from sales of standard ingots to VAP supported the positive trajectory of Ebitda margins.
The cost of goods sold for H1, 2021 remained low on a yearly basis on account of lower manpower cost and favourable inventory movements, which however were partially offset by higher raw material costs.
On overall basis, the decline in cost of goods sold contributed QR22mn positively to Qamco’s net profits in H1, 2021.
The group's financial position continued to remain robust with the liquidity position at the end of June 30, 2021 reaching QR812mn in form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).
During H1, 2021, Qamco’s JV generated share of operating cash flows of QR393mn, with a share of free cash flows of QR276mn.
 
 



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