Qatar Aluminium Manufacturing Company (Qamco) will remain focused on its five-year strategic plan and strengthen its market position, Qamco Chairman Abdulrahman Ahmad Al Shaibi said on Wednesday.
Addressing shareholders at the company’s annual general assembly meeting on Wednesday, Shaibi said, “We will continue to work relentlessly to enhance shareholder value, with a strategic intent to remain a cost-competitive aluminium producer and achieve operational excellence with higher safety and environmental standards.”
In contrast with the last year, he said, “Macroeconomic environment rebounded, which led to a solid primary aluminium demand coupled with supply constraints which remained evident throughout the year.”
“These supply-demand imbalances led to a solid price trajectory for primary aluminium. While macroeconomic sentiments remained positive, Qamco’s JV continued to focus on operational excellence, safety, growth and sustainability. Operational excellence was mainly driven by continuous optimization of our processes, improved reliability, and enhanced asset integrity. On the sustainability front, our JV continued to limit the environmental impacts of its businesses while enhancing energy efficiency and conservation measures,” Shaibi said.
In light of these positive factors, he said, the company has achieved outstanding financial results since its inception, as its net profit amounted to QR835 million for 2021, with earnings per share of QR 0.15.
From the date of QAMCO’s incorporation, he said, “The company has paid a total of QR 362 million in the form of dividends, despite the challenging business environment in previous years, equating to a payout of QR 0.065 per share.”
Given the current short to medium-term market outlook coupled with funding needs and CAPEX programme planned for the upcoming years, he said, the board of directors proposed to pay a total annual dividend distribution for 2021 of QR446 million, equivalent to a payout of QR 0.08 per share, representing a payout ratio of 53 percent of net earnings for 2021.
QAMCO Board Member and Manager Privatized Companies Affairs Dept at QatarEnergy Mohammed Jaber Al Sulaiti, who also addressed the shareholders on the occasion, said, “During 2021, prices of aluminium demonstrated strength on the back of renewed global demand, with sectors such as construction and automotive industries witnessing a rebound, as global economies sequentially recovered. Aluminium being a key input for electric vehicles, wind turbines and solar power, brings an additional layer of long-term demand for primary aluminium.” He said, “On the supply side, the power crisis in key markets, along with decarbonisation linked output cuts, remained evident since the start of the year and led to a significant aluminium capacity curtailment aiding accelerated inventory draws.
“On an overall basis, with demand remained buoyant coupled with supply-side deficits and lower inventory levels have sent primary aluminium prices to a multi-year high and led to improved margins for efficient producers.”
Being a cost-competitive aluminium smelter, he said, Qamco’s JV has successfully delivered on output efficiency with its technologically advanced facilities, coupled with assured long term feedstock supply and an intense HSE compliance.
He said, “Qamco JV’s global marketing partnership with the other JV partner, provided access to strategically important markets, which makes the Company more competitive in comparison to other international players, despite the supply chain challenges which remained evident throughout 2021. JV’s cost of goods sold for the financial year 2021 was higher compared to last year mainly on account of higher raw material costs.”
The general assembly approved the board’s recommendation for a dividend payment of QR 0.08 per share for 2021, representing 8 percent of the nominal share value.