Qatar Aluminum Manufacturing Company (Qamco), a 50% joint venture partner in Qatar Aluminum Company or Qatalum, has reported a 54% jump year-on-year in net profit to QR803mn during the nine-month ended September 30, 2022.
The share of JV’s revenue grew 42% to QR3.02bn during the review period. The Ebitda (earnings before interest, taxes, depreciation and amortisation) increased by 32% to QR1.21bn, translating as Ebitda margin of 40%.
The annualised gains in profitability was largely attributed to an overall growth in average realised selling prices, which shot up 41% to $3,489 per metric tonne, and contributed QR887mn positively to the net profit for nine-month period ended September 30 2022.
Production and sales volume levels remained relatively flat year-on-year in the review period. The Qamco's JV was successful in maximising production of value-added products (VAP), as minimal sales of standard ingots were made during current period.
Higher premiums were realised, mainly linked to better market sentiments prevailed during the first nine months of the year versus last year.
The macroeconomic environment for the aluminium markets remained volatile throughout this year. Several factors impacted the commodity markets at the macro level, which cascaded to the supply-demand dynamics of aluminium and led to volatilities in prices.
On an overall basis, aluminium prices demonstrated essentially bullish trends during early parts of 2022, amid constructive demand and supply shortages. However, since the mid-year, LME prices softened on account of uncertainties over recessionary fears and limited demand.
However, operating cost remained elevated, mainly on account of higher raw material costs. On overall basis, the increase in operating expenses contributed QR611mn negatively to the net profits.
Qamco’s financial position continued to remain robust with the liquidity position at the end of September 2022 reaching QR1.76bn in the form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).
During the review period, Qamco's JV generated a share of operating cash flows of QR959mn, with a share of free cash flows of QR779mn.
The company said Lolwa Khalil Salat, who holds a Bachelor’s degree in Finance from Northeastern University, and a Master’s degree in Finance from Harvard University, has been appointed as a member of board.
The share of JV’s revenue grew 42% to QR3.02bn during the review period. The Ebitda (earnings before interest, taxes, depreciation and amortisation) increased by 32% to QR1.21bn, translating as Ebitda margin of 40%.
The annualised gains in profitability was largely attributed to an overall growth in average realised selling prices, which shot up 41% to $3,489 per metric tonne, and contributed QR887mn positively to the net profit for nine-month period ended September 30 2022.
Production and sales volume levels remained relatively flat year-on-year in the review period. The Qamco's JV was successful in maximising production of value-added products (VAP), as minimal sales of standard ingots were made during current period.
Higher premiums were realised, mainly linked to better market sentiments prevailed during the first nine months of the year versus last year.
The macroeconomic environment for the aluminium markets remained volatile throughout this year. Several factors impacted the commodity markets at the macro level, which cascaded to the supply-demand dynamics of aluminium and led to volatilities in prices.
On an overall basis, aluminium prices demonstrated essentially bullish trends during early parts of 2022, amid constructive demand and supply shortages. However, since the mid-year, LME prices softened on account of uncertainties over recessionary fears and limited demand.
However, operating cost remained elevated, mainly on account of higher raw material costs. On overall basis, the increase in operating expenses contributed QR611mn negatively to the net profits.
Qamco’s financial position continued to remain robust with the liquidity position at the end of September 2022 reaching QR1.76bn in the form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).
During the review period, Qamco's JV generated a share of operating cash flows of QR959mn, with a share of free cash flows of QR779mn.
The company said Lolwa Khalil Salat, who holds a Bachelor’s degree in Finance from Northeastern University, and a Master’s degree in Finance from Harvard University, has been appointed as a member of board.