QAMCO’s net profit fell 48 per cent to 276 million Qatari riyals in the first nine months, as shipping constraints reduced aluminium production and sales. The company’s share of joint venture revenue was about 1.4 billion riyals. Higher selling prices and lower operating costs partly cushioned the volume decline, while cash including its joint venture share stood at about 1.9 billion riyals.
Qatar Aluminium Manufacturing Company, QAMCO, reported net profit of 276 million Qatari riyals for the nine months ended 30 September, down 48 per cent from a year earlier. The company owns 50 per cent of Qatalum, the aluminium joint venture in Qatar. QAMCO’s financial figures represent its share of the venture, while production and sales volumes describe the venture as a whole.[1], [2]
QAMCO attributed the decline to lower sales volumes as shipping constraints reduced operating activity. Joint venture production fell 34 per cent to 338,000 tonnes and sales fell 57 per cent to 219,000 tonnes. Average realised selling prices rose 27 per cent to 3,566 US dollars per tonne. The company said higher prices and lower operating costs, including raw material costs, partly offset the volume decline.[2]
QAMCO’s share of joint venture revenue was about 1.4 billion riyals. Its share of earnings before interest, tax, depreciation and amortisation was 602 million riyals, with a margin of 44 per cent compared with 34 per cent a year earlier. Cash and bank balances including its joint venture share stood at about 1.9 billion riyals. QAMCO said the venture continued to generate positive operating and free cash flow and used the reduced-capacity period for planned maintenance.[2]
