Qatar Aluminium Manufacturing Company (Qamco), a 50% joint venture partner in Qatar Aluminium Company (Qatalum), has reported a net profit of QR611mn with earnings-per-share of QR0.11 for the first six months of 2022.
The share of JV’s revenue increased by 56% to QR2.11bn. Earnings before interest, taxes, depreciation and amortisation increased by 58% to QR883mn.
Qamco's improved financial results were largely attributed to an overall growth in average realised selling prices. The average realised selling price grew 54% year-on-year and contributed QR738mn positively to the net profit for the review period.
Production and sales volume levels marginally increased by 1% in H1, 2022 on annualised basis. Higher premiums were realised during H1-22, mainly linked to better market sentiments prevailed during the first six months of the year.
Operating cost remained higher versus the first half of 2021, mainly on account higher raw material costs, but partially offset by favourable inventory movements. On overall basis, the increase in operating cost contributed QR379mn negatively to the net profits for H1-22 versus H1-21.
Qamco's financial position continued to remain robust with the liquidity position at the end of June 30, 2022 reaching QR1.33bn in the form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).
During the first half of 2022, Qamco's JV generated share of operating cash flows of QR451mn with a share of free cash flows of QR307mn.
Qamco's JV continues to maintain high efficiency and cost competitiveness in terms of its production and operations. The capital expenditure (capex) projects were conducted as planned and in line with the operational requirements. These capex programmes will support JV’s drive for operational efficiency, while reducing carbon footprints.