Aluminium Bahrain B.S.C. delivered a strong financial performance in Q1 2026, posting sharply higher profits despite operational headwinds linked to regional logistics disruptions and controlled production adjustments.

The company reported a profit attributable to equity holders of BD75.3 million (US$200.3 million), representing a 316% year-on-year increase from BD18.1 million (US$48.2 million) in Q1 2025. Earnings per share rose to fils 53, compared with fils 13 in the same period last year. Total comprehensive income attributable to shareholders reached BD76.1 million (US$202.4 million), up 353% year-on-year from BD16.8 million (US$44.7 million).

Alba’s balance sheet showed modest strengthening. Total equity attributable to owners increased to BD2,098.7 million as of 31 March 2026, compared with BD2,084.6 million at the end of 2025. Total assets rose 7% to BD2,807.6 million from BD2,623.3 million, reflecting stable financial positioning amid volatile market conditions.

Operational performance was weaker due to external constraints. Net finished production fell 14% year-on-year to 339,734 metric tonnes, while sales volumes declined 17% to 312,563 metric tonnes. The company cited disruptions in regional shipping routes, including constraints affecting transit through key corridors, alongside precautionary shutdowns of Lines 1–3 to ensure safety and maintain operational stability. Despite lower volumes, Value-Added Products (VAP) remained a key focus, accounting for 71% of total shipments at 222,626 metric tonnes, demonstrating continued emphasis on higher-margin product mix.

Market conditions were broadly supportive for pricing. The average LME aluminium price increased 22% year-on-year to US$3,195 per tonne, driven by supply disruptions and tighter global availability. LME inventories declined 9% to 418,000 metric tonnes, reflecting reduced stock levels and increased cancellations of warehouse warrants. Regional premiums strengthened, particularly in the US Midwest and Rotterdam, as supply was diverted away from Asia toward higher-premium markets.

From a macro perspective, global aluminium demand remained relatively stable, growing around 0.5% year-on-year, supported by packaging, automotive, and electrical sectors. Supply increased 2%, though constrained by structural limits in China and reduced Middle East output due to geopolitical tensions.

Strategically, Alba continued advancing its efficiency and growth agenda. The e-Al Hassalah initiative delivered US$126.37 million in cumulative benefits since 2024, although Q1 2026 recorded a marginal net loss of US$0.52 million. The company also progressed its proposed acquisition of Aluminium Dunkerque, signing a share purchase agreement in May 2026, subject to regulatory approvals.