QAMCO posts net profit of QR446m in 2023

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Doha, Qatar: Qatar Aluminum Manufacturing Company Q.P.S.C. (“QAMCO” or “the Company”; QE Ticker: QAMC), a 50% joint venture partner in Qatar Aluminum Company (Qatalum), yesterday reported a record net profit of QR446m for the year ended 31December 2023, with an earnings per share (EPS) of QR0.080.

Commenting on the financial and operational performance for the year ended 31 December 2023, Abdulrahman Ahmad Al Shaibi, Chairman of the Board of Directors, QAMCO, said: “Throughout a year marked by challenging macroeconomic conditions, our JV’s dedicated focus on operational excellence, production flexibility, prudent cost management, safety, and sustainability has yielded commendable financial and operational results. Our strong belief in HSE has successfully positioned our JV to meet our health, environmental and social responsibility targets. Moving ahead, we remain dedicated to leveraging our robust and sustainable business model for the long-term creation of shareholder value.”

QAMCO recorded a net profit of QR446m for the year ended 31 December 2023, as compared to QR919m for the last year, with an earnings per share (EPS) of QR0.080 versus QR0.165 for the last year.

Share of JV’s revenue decreased by 21% to reach QR3,150m for the current year, as compared to QR3,985m for the last year. EBITDA reduced by 33% and reached QR974m in comparison to QR1,456m for the last year.

QAMCO’s financial position continued to remain robust with the liquidity position at the end of 31December 2023 reaching QR2,164m in form of cash and bank balances (including proportionate share of cash and bank balances of the joint venture).

During the financial year ended 31 December 2023, QAMCO’s JV generated share of operating cash flows of QR1,162m, with a share of free cash flows of QR958m.

QAMCO’s JV remains committed in maintaining high operational efficiency and competitiveness in production and operations.

The continued emphasis on health and safety measures reflects a dedication to ensuring asset reliability and achieving operational excellence. Notable achievements in Health, Safety, and Environment (HSE) include the absence of any recorded heat-related incidents involving Qatalum employees. The company is recognized for delivering exemplary safety performance within the aluminum industry and continues its unwavering focus on reducing the joint venture’s energy consumption.

During 2023 QAMCO’s JV has almost concluded relining its 3rd generation of pots, and replaced fluewalls to ensure sustainable operations, while minimizing the risk of disruption in production.

During the year, QAMCO JV incurred QR210m (QAMCO’s share) on account of capital expenditure, which included among others, pot relining, turbine major inspection and capital spare, chemical warehouse erection and flue wall replacement.

After reviewing current year’s robust financial performance, with the present and forecasted liquidity position, and considering current and future macroeconomic conditions, business outlook, CAPEX, long term loan repayment plan of the Company, the Board of Directors proposed a total annual dividend distribution of QR391m for the year ended 31 December 2023, representing a payout ratio of 88% of current year’s net earnings. A dividend of QR0.07 per share represent 7% of par value resulting in a dividend yield of 5% on the closing share price as of 31 December 2023.

QAMCO will host an IR earnings call with investorsto discuss its results for the financial year 2022, business outlook and other matters, on Wednesday, 7 February 2024 at 1:30 pm Doha time.

The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at QAMCO’s website.

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