Qamco reports nine months net profit at QR521mn
October 24 2021 11:50 PM
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Qamco
Qamco

Qatar Aluminum Manufacturing Company (Qamco), a 50% joint venture partner in Qatalum, has reported a more than 43-fold jump year-on-year in net profit to QR521mn in the first nine months (9M) of 2021.
The company has set record of highest ever quarterly net profit of QR233mn (in the third quarter) since incorporation, capturing benefits of strong aluminium pricing on renewed demand amidst constrained supply. The earnings per share stood at QR0.093 at the end of September 30, 2021.
Prices of aluminium continue to show strength on the back of renewed global demand, with sectors such as construction and automotive industries witnessing growth, as global economies sequentially recovered linked to the market reopening on the back of successful ongoing vaccination drive.
Aluminium being a key input for electric vehicles, wind turbines and solar power, has brought an additional layer of long-term demand.
The share of joint venture's revenue increased by 32% year-on-year to QR2.13bn and Ebitda (earnings before interest taxes depreciation and amortisation) more than doubled to QR918mn for 9M-21.
Qamco’s improved financial results was largely attributed to an overall growth in average realised selling prices which increased by 37% during 9M-21, contributing QR597mn positively towards its bottom-line.
Production remained stable with volumes witnessing a marginal 1% jump during 9M-21 against the year-ago period. Sales volumes fell 3%, reflecting the timing of shipment.
The joint venture's selling cost for 9M-21 was higher compared to the same period last year, mainly on account of higher raw material costs; but partially offset by favourable inventory movements and cost optimisation initiatives.
The finance cost for 9M-21 declined 38% due to decline in interest rates and absence of unamortised portion of financing cost being written-off last year. The decline in finance cost contributed QR32mn positively to Qamco's net earnings.
Qamco's financial position continued to remain robust with liquidity position at the end of September 30, 2021 reaching QR1.12bn in form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).
During 9M-21, the joint venture generated share of operating cash flows of QR740mn, with a share of free cash flows of QR576mn.
Highlighting that it continued its efforts to manage controllable cost through optimisation programme, Qamco said until 9M-21, the realised cost savings were in excess of expectations, via higher throughput and lower operating cost expenditures, which reflected positively on the joint venture's operating cost base, while keeping it on lower side of the cost curve in comparison to global peers.
 
 



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