Bahrain’s Alba cites accounting changes as Q1 profit falls 88.6 per cent
Alba in February cut its dividend for 2015 to free up cash for its expansion project
Dubai: Aluminium Bahrain (Alba), owner of one of the world’s largest aluminium smelters, reported a 88.6 per cent fall in first-quarter net profit on Monday as a result of changes to its accounting standards.
Alba’s net income for the three months to Mar. 31 was 4.2 million dinars ($11.22 million) it said in a statement. This compares with a profit of 37.2 million dinars in the prior-year period.
Net income included extraordinary non-recurring items amounting to 54,263 dinars for the first quarter, compared with 396,981 dinars the previous year, as a result of changes in its accounting standards, it said.
Alba in February cut its dividend for 2015 to free up cash for its expansion project, expected to cost $3.5 billion and raise its annual output to 1.45 million tonnes.
The firm appointed Bechtel as the contractor for the Line 6 expansion in April.
Alba’s chief executive said in November it would reach its target to cut cash costs by $150 per tonne by January 2016, although the firm was looking to make further savings.
