After a volatile 2023 and early 2024, the aluminium market began stabilising in the second quarter of 2024. Various factors contributed to the challenging supply-demand dynamics of primary aluminium, including tightened monetary policies, regional geopolitical tensions in the Red Sea, and weakened consumer demand due to high inflation and interest rates.
Comparatively, QAMCO's net profit for H1 2024 was QR237 million, slightly down from QR240 million in H1 2023. The EPS also saw a marginal decline from QR0.043 in H1 2023 to QR0.042 in H1 2024. The company’s share of joint venture revenue reached QR1.5 billion in H1 2024, compared to QR1.6 billion during the same period last year. Despite these declines, the EBITDA margin remained robust at 33 per cent, up from 31 per cent in H1 2023.
A decline influenced the financial results for H1 2024 in the average realised selling prices, which dropped by 9 per cent to $2,485/MT amid macroeconomic challenges. This price drop impacted the net profit by QR154 million compared to H1 2023. However, improved operating costs and increased sales volumes helped mitigate some of these effects. Sales volumes rose by 4 per cent due to higher demand for foundry alloys and extrusion ingots, contributing QR56 million positively to the results despite shipment disruptions in the Red Sea.
QAMCO’s Q2 2024 net profit surged 77 per cent compared to the previous quarter, reaching QR151 million. This increase was driven by a 27 per cent rise in sales volume and a 4 per cent improvement in average selling prices. The uptick in quarterly sales volume, attributed to a recovering aluminium market, added QR171 million to the bottom line in Q2 2024 compared to the previous quarter.
