02/05/2025 02:52 AST
Qatar Aluminum Manufacturing Company (QAMCO), a 50% joint venture partner in Qatar Aluminum Company (Qatalum), reported a net profit of QR156m for the three-month period ended 31 March 2025, with an earnings per share (EPS) of QR 0.028 compared to an earnings per share of 0.015 in Q1-2024.
The macro environment in Q1-2025 was characterized by a mix of positive economic indicators amidst ongoing challenges.
The aluminium market is navigating through a complex landscape of trade policies, supply chain issues, and fluctuating demand.
While major economies have shown moderate growth, particularly in emerging markets, the ongoing trade tensions coupled with rising energy costs and logistical challenges have contributed to an overall increase in the price of aluminium in Q1-2025.
Simultaneously, government fiscal policies have positively influenced trade dynamics, increasing demand for aluminum through infrastructure investments and encouraging sustainability and innovation.
As industrial nations continues to focus on commodity-based growth, they are promoting a more sustainable aluminum market.
In the current macroeconomic climate, global demand for aluminum remains stable, fueled by moderate growth in the automotive and construction sectors.
QAMCO's net profit increased to QR156m in Q1-2025, this improvement was driven by improved revenue, and favorable inventory changes.
QAMCO's share of JV's revenue increased during the period, compared to Q1-2024 on account of improved prices and volumes.
EBITDA increased as compared Q1-2024 while the EBITDA margin continue to remain consistent.
In Q1-2025, QAMCO reported strong financial results, largely driven by increase in average selling prices coupled with increase in sales volumes and savings from finance costs.
QAMCO achieved a slight increase in production volumes, underpinned by stable current efficiency and improved amperage.
The JV maintained an optimal and balanced production mix to respond to regional market demands, thereby sustaining sales across its various product range of foundry alloys, extrusion ingots, and standard ingots.
The gains fully offset the increase in cost of goods sold, mainly arising from higher alumina costs. As a result, QAMCO achieved higher net profit during this quarter versus the same quarter last year.
QAMCO's net profit in the first quarter of 2025 declined compared to the previous quarter, largely owing to decrease in sales volumes due to inco-terms, which offset savings achieved in costs as well as gains from increase in selling price compared to the previous quarter.
QAMCO's financial position remained steady as of March 31, 2025, with substantial cash and bank balances (includes QAMCO's proportionate share of cash and bank balances from its JV).
This strong position was maintained despite distributing interim dividends and H2-2024 dividends.
QAMCO will host an IR earnings call with investors to discuss its results for the three-months period of 2025, business outlook and other matters today at 1:30 p.m. Doha time.
The Peninsula
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