MIRA INFORM REPORT

 

 

Report No. :

322431

Report Date :

15.05.2015

 

IDENTIFICATION DETAILS

 

Name :

ALUMINIUM BAHRAIN PJSC (ALBA)

 

 

Registered Office :

Building No. 150, Block No. 951, 150 Howar Avenue, Road No. 94, Asker Village, PO Box 570 & 20097, Manama

 

 

Country :

Bahrain

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

09.08.1968

 

 

Com. Reg. No.:

999-1

 

 

Legal Form :

Bahraini Public Joint Stick Company

 

 

Line of Business :

Engaged in the manufacture of carbon anodes for aluminium smelting and casting of aluminium in various forms.

 

 

No of Employees :

3,000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

 

Bahrain

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

BAHRAIN - ECONOMIC OVERVIEW

 

Bahrain has made great efforts to diversify its economy; its highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. Bahrain's economy, however, continues to depend heavily on oil. In 2012, petroleum production and refining accounted for 77% of Bahrain's export receipts, 87% of government revenues, and 19% of GDP. Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking and continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In 2011 Bahrain experienced economic setbacks as a result of domestic unrest, however, the economy recovered in 2012-13, partly as a result of improved tourism. Some economic policies aimed at restoring confidence in Bahrain's economy, such as the suspension of an expatriate labor tax and frequent bailouts of Gulf Air, will make Bahrain's long-term economic challenges - youth unemployment and the growth of government debt - more difficult to address.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : ALUMINIUM BAHRAIN PJSC (ALBA)

Country of Origin                                   : Bahrain

Legal Form                                           : Bahraini Public Joint Stick Company

Registration Date                                  : 9th August 1968

Commercial Registration Number           : 999-1, Manama

Issued Capital                                       : BD 142,000,000

Paid up Capital                                     : BD 142,000,000

Total Workforce                         : 3,000

Activities                                               : Manufacture of carbon anodes for aluminium smelting and casting of

                                                              aluminium.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

COMPANY NAME

 

ALUMINIUM BAHRAIN BSC (C) (ALBA)

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Building No. 150, Block No. 951

Street               : 150 Howar Avenue, Road No. 94

Area                 : Asker Village

PO Box            : 570 & 20097

Town                : Manama

Country : Bahrain

Telephone         : (973-17) 830000 / 830303 / 833448

Facsimile          : (973-17) 830083 / 833833

Email                : helpdesk@aluminiumbahrain.com / alba@alba.com.bh

 

Premises

 

Subject operates from a large suite of offices, a factory and storage facilities that are owned and located in the Industrial Area of Manama.

 

 

KEY PRINCIPALS

 

Board of Directors

 

Mahmood Hashim Al Kooheji                                                                 Chairman

 

Fawzi Ahmed Kanoo                                                                                                                                Director

 

Sheikh Mohamed Bin Khalifa Bin Ahmed Al Khalifa                                 Director

 

Osama Mohammed Al Orayidh                                                               Director

 

David Meen                                                                                          Director

 

Mutlaq H Al Morished                                                                            Director

 

Homood A Al Tuwaijri                                                                            Director

 

Yusuf Abdulla Taqi                                                                                Director

 

Abdulaziz S Al Humaid                                                                          Director

 

Dr Talaat Aldafer Alqahtani                                                                    Director

 

Management Team

 

Tim Murray                                                                                            Chief Executive Officer

 

Isa Abdul Latif Al Ansari                                                                                    Chief Operations Officer

 

Jean Baptiste Lucas                                                                              Marketing Manager

 

Abdul Rahman Janahi                                                                            Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 9th August 1968 (Production began on 11th May 1971)

 

History : Subject was originally incorporated in 1968 as a With Limited  Liability Company, however in May 1975 the Bahraini Government  took a controlling interest in the company, bringing its share of  ALBA’s equity to 74.9% with further acquisitions in 1976.

 

On 1st July 1979, Saudi Arabia’s Saudi Public Investments Fund  took a 20% stake in ALBA, reducing the Bahrain Government’s   share to 54.9% and subsequently acquired a 24.33% participation in Bahrain Aluminium Company (BALCO), which was responsible  for marketing the government’s share of ALBA’s output.

 

The other ALBA shareholders included Kaiser Aluminium of the US  (with 17%) and Breton Investments of Germany (with 5.1%),  however in July 1989 Kaiser Aluminium sold its stake in the subject  to Balco for BD 28 million, which subsequently raised the stake of  Bahrain Saudi Aluminium Marketing Company (Balco) in subject to 77%.

 

Subject subsequently changes its legal status to the current style of a Bahraini Shareholding Company Closed BSC (C).

 

In 1999, Bahrain Saudi Aluminium Marketing Company (Balco) went into voluntary liquidation and withdrew from the company after assigning all its shares to the Bahraini Government. Alba is now responsible for its own sales and marketing operations. The Saudi Public Investments Fund has assigned its stake in the subject to Sabic Industrial Investments.

 

On 23rd November 2010 subject re-registered as a Bahraini Public Joint Stock Company.

 

Legal Form                  : Bahraini Public Joint Stick Company

 

Commercial Reg. No.   : 999-1, Manama

 

Issued Capital              : BD 142,000,000

 

Paid up Capital            : BD 142,000,000

 

Name of Shareholder (s)                                                           Percentage

 

Bahrain Mumtalakat Holding Company BSC (C)                           69.38%

 

Sabic Industrial Investments                                                       20.62%

Saudi Arabia

 

Local businessmen and private investors                                                10.00%

 

Subject has a total of 2,576 shareholders.

 

 

AFFILIATED COMPANIES

 

Alba Smelter Services Ltd

London

United Kingdom

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of carbon anodes for aluminium smelting and casting of aluminium in various forms.

 

Through an ongoing programme of growth and development, the rated capacity of the plant has increased in four discrete stages from the initial 120,000 tonnes per year (tpy) to 500,000 tonnes per year (tpy), thereby taking ALBA to the very forefront of the world aluminium industry.

 

Approval was given in June 1979 to build a third reduction line, increasing annual capacity from 120,000 tonnes to 170,000 tonnes, which was completed in June 1981. In March 1990 the 235,000 tonnes per year expansion, costing $1.45 billion, more than doubled ALBA's annual capacity to 460,000 tonnes.

 

In 1999, and as part of the company's long-term strategy and in view of its stability and ongoing success, the Board approved a feasibility study to look into the future expansion of the plant which could mean an increase in capacity of an additional 250,000 tonnes per annum. Capacity at Alba’s 1,504MW power plant will also be increased by up to 250MW.

 

The recent installation of a waste heat recovery system has saved an estimated 650 million cubic metres of natural gas every year and a programme has been installed to replace solid tar pitch with the more environmentally friendly liquid  pitch as a raw material. All ALBA's technology innovations and resultant

emission reductions are geared to not only reducing "traditional" pollution, but also to mitigating global environmental problems like global warming. Since 1990, more than $300m has been invested in environmental control systems at Alba, eliminating emissions from the smelter and implementing the latest environmental monitoring systems to meet the aluminium industry's highest international standards.

 

Alba became the largest modern aluminium smelter in the world when it commissioned its newest reduction line, Line 5, in May 2005.

 

Line 5,  which was built as part of an US1.7 billion expansion project that includes the construction of a new power station, carbon, cast house and other facilities, is the longest reduction line in the world and increases Alba's annual production capacity to more than 830,000 tonnes per annum (tpa).

 

In 1994 Alba became the first major company in Bahrain to be awarded ISO 9002 and it was also awarded the ISO14001 certificate in 2000.

 

General Information

 

Area of main site:

3.65 sq.km

Number of potlines:

5

Start-up of Potline 1:

1971

Start-up of Potline 2:

1971

Start-up of Potline 3:

1981

Start-up of Potline 4:

1992

Start-up of Potline 5:

2005

 

Number of employees

2,914*

Percentage of national employees

87%

* as of 2012

 

 

Type of finished product
Standard and T-ingots, extrusion billets, rolling slab,
properzi ingots, and molten aluminium.

Hot metal production capacity

890,000 mtpa

 

Total Sales (2012)

 

Extrusion billet

41%

Foundry Alloys

13%

Rolling Slabs

12%

Standard Ingots

5%

Liquid Metal

29%

 

Total Exports (2012)

 

Bahrain

46%

Asia

14%

Other MENA

24%

Europe

12%

America

4%

 

Power Plant Capacity

 

PS1

338 MW

PS2

179 MW

PS3

808 MW

PS4

909 MW

Total installed capacity:

2,234 MW

 

Average metal purity

 

Overall average metal purity

99.84%

 


Petroleum Coke Calciner and Seawater desalination Plant

 

Total project cost:

US$ 450 million

Raw material (green petroleum coke):

775,000 mt per year

Production – calcined petroleum coke:

808 MW

Desalinated water capacity

41,000 cubic metres per day of potable water

Port facility:

Able to handle 2.5 million metric tonnes of materials per year

 

 

Import Countries: United States of America, Australia, Switzerland, France, Norway, the United Kingdom and Tunisia

 

International Suppliers:

 

Kaiser Aluminium Technical Services                  United States of America

Great Lake Export                                             United States of America

Reynolds Metals Co                                          United States of America

Alcoa of Australia Limited                                  Australia

Almeer Norway                                                  Norway

ABB Trading (UK) Ltd                                        United Kingdom

Industrie Chimique de Fluor                                Tunisia

 

Alcoa of Australia has a long term contract to supply alumina to Alba. The alumina comes from refineries in Perth. Alba imports all the raw materials it uses, obtaining alumina from Western Australia, petroleum coke from the United States of America, and pitch from the Far East.

 

Export Countries: GCC Countries (including Kuwait, Saudi Arabia and Qatar), Asia and Europe.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Bahraini Dinar (BD 000’s)

 

Balance Sheet                                                              31/12/13            31/12/12            31/12/11

 

ASSETS

Non-current assets

Property, plant and equipment                                       868,318 901,779             946,807

Long term receivable                                                     6,877                10,314              13,753

875,195 912,093             960,560

Current assets

Inventories                                                                    144,930 143,564             158,020

Current portion of long term receivable                           3,438                3,438                3,438

Accounts receivable and prepayments                           85,375              108,299             83,285

Derivative financial instruments                                      -                       104                   -

Bank balances and cash                                                64,540              61,605              99,487

303,083 317,010             344,230

TOTAL ASSETS                                                            1,178,278          1,229,103          1,304,790

EQUITY AND LIABILITIES

Equity

Share capital                                                                 142,000 142,000             142,000

Treasury shares                                                             (5,157)              (4,087)              (5,029)

Statutory reserve                                                           71,000              71,000              71,000

Capital reserve                                                              249                   249                   249

Retained earnings                                                          629,381 600,683             544,064

Proposed dividend                                                        30,978              19,773              56,509

Total equity                                                                   868,451 829,618             808,793

Non-current liabilities

Borrowings                                                                   84,402              77,096              167,140

Derivative financial instruments                                      5,313                23,996              34,324

Employees’ end of service benefits                               930                   915                   940

90,645              102,007             202,404

Current liabilities

Borrowings                                                                   116,432 160,303             149,733

Short term loans                                                            -                       17,160              13,084

Accounts payable and accruals                                      97,960              106,585             100,130

Derivative financial instruments                                      4,790                13,430              30,646

219,182 297,478             293,593

Total liabilities                                                               309,827 399,485             495,997

TOTAL EQUITY AND LIABILITIES                                   1,178,278          1,229,103          1,304,790

 

Statement of Income

 

Sales                                                                            749,338 743,725             883,317

Cost of sales                                                                (640,751)           (638,515)           (662,259)

GROSS PROFIT                                                            108,587 105,210             221,058

Other income                                                                7,304                39,378              7,641

Selling and distribution expenses                                   (17,574)            (17,838)            (21,835)

Administrative expenses                                                (30,609)            (27,347)            (24,820)

(Loss) gain on foreign exchange translation                    211                   (1,346)              394

Directors’ fees                                                              (190)                 (190)                 (200)

Finance costs                                                               (5,823)              (7,182)              (7,233)

PROFIT FOR THE YEAR BEFORE DERIVATIVES           61,906              90,685              175,005

Gain on revaluation/settlement of derivative

financial instruments (net)                                              17,871              5,860                36,898

PROFIT FOR THE YEAR                                                79,777              96,545              211,903

Other comprehensive income for the year                       -                       -                       -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR      79,777              96,545              211,903

 

Local sources consider subject’s financial condition to be Fair.

 

BANKERS

 

National Bank of Bahrain BSC

NBB Tower

Government Road

PO Box: 106

Manama

Tel: (973-17) 258800

Fax: (973-17) 263876

 

Bank of Bahrain & Kuwait

43 Government Avenue

PO Box: 597

Manama

Tel: (973-17) 253388

Fax: (973-17) 275785

 

Al Ahli Commercial Bank

Government Avenue

PO Box: 5941

Manama

Tel: (973-17) 244333

Fax: (973-17) 241301

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                    July 2005                      July 2007                      February 2014

Credit amount                           686,000             677,000             250,000

Amount overdue                        0                                  0                                  0

Payment terms                          60 days                                    90 days                                    60 days

Payment Method                       Letters of Credit                        Letters of Credit                        Letters of Credit

Paying record                           No Complaints              No Complaints              No Complaints

Currency                                   Pounds Sterling                        Pounds Sterling                        Euros

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

             

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.84

UK Pound

1

Rs.100.65

Euro

1

Rs.72.88

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.