Bahrain's Alba reports 45% fall in Q2 net profits
The company aims to become the world's largest single aluminium smelter complex, boosting its annual output by 540,000 tonnes
Aluminium Bahrain (Alba) reported a 45.4% fall in second-quarter net profits for 2016, said a report.
Alba's net profit for the three months ending 30 June was $43.2m (BHD16.2m), compared with a profit of $79m (BHD29.8m) in 2015.
The company did not provide a reason for the decline in its statement, but Alba had reported weak earnings in the previous three quarters because of a collapse in global aluminium prices.
The firm said its board had proposed not to offer a cash or share dividend for the period. This compares with $0.01 (BHD0.0055) per share in the corresponding period of 2015.
Alba had cut its full-year dividend for 2015, with chief executive Tim Murray saying in February that the reduced payment would help free up cash for its Line 6 expansion project.
The company aims to become the world's largest single aluminium smelter complex, boosting its annual output by 540,000 tonnes to 1.5 million tonnes by adding the sixth "potline", used to produce the metal from raw materials such as bauxite.
Production at the facility is expected to start in early 2019 and Alba is raising around $3bn to help finance the scheme, through a mixture of loans from banks and export credit agencies and an international bond or sukuk issue.
Alba has approached banks for a $750m loan towards the Line 6 financing, sources told Reuters in June.