Qatar Aluminium Manufacturing Company (Qamco), a 50% joint venture partner in Qatar Aluminum or Qatalum, has reported an almost nine-fold year-on-year jump in net profit to QR835mn in 2021, translating into earnings-per-share (EPS) of QR0.15.
The board has recommended a total annual dividend distribution of QR446mn for the proposed year, representing a payout ratio of 53% of current year’s net earnings. A dividend of QR0.08 per share representing 8% of par value resulting in a dividend yield of 4.4% on the closing share price as on December 31, 2021.
“The main highlight of 2021 was a sequential macroeconomic recovery leading to strong price trajectories for primary aluminium, operational excellence along with good business management in the continuing Covid-19 situation, which resulted in an improved set of financial results since Qamco’s incorporation," said Abdulrahman Ahmad al-Shaibi, chairman, Qamco.
The share of revenue from the joint venture grew 42% to QR3.12bn during the review period.
Qamco’s improved financial results, in comparison to the previous year, was largely attributed to an overall growth in average realised selling prices, which shot up 42% during 2021 versus last year, and contributed QR932mn positively.
Production activity remained stable with volumes witnessing a marginal increase of 1% during the year. Sales volumes marginally fell 0.4%, reflecting the timing of shipment to various destinations. Qamco’s joint venture remained successful in realising higher production and sales of VAP in comparison to the previous year.
The joint venture's cost of goods sold during 2021 was higher compared to the previous year, mainly on account higher raw material costs offset by favourable inventory movements and cost optimisation.
Finance cost for 2021 witnessed a decline of 32% on a yearly basis, on account of decline in interest rates and absence of unamortised portion of financing cost being written-off last year. The decline in finance cost contributed QR33mn positively to Qamco’s net earnings.
Qamco’s financial position continued to remain robust with cash and bank balances of QR1.5bn at the end of December 2021. It generated share of operating cash flows of QR917mn, with a share of free cash flows of QR693mn.
“The main highlight of 2021 was a sequential macroeconomic recovery leading to strong price trajectories for primary aluminium, operational excellence along with good business management in the continuing Covid-19 situation, which resulted in an improved set of financial results since Qamco’s incorporation," said Abdulrahman Ahmad al-Shaibi, chairman, Qamco.
The share of revenue from the joint venture grew 42% to QR3.12bn during the review period.
Qamco’s improved financial results, in comparison to the previous year, was largely attributed to an overall growth in average realised selling prices, which shot up 42% during 2021 versus last year, and contributed QR932mn positively.
Production activity remained stable with volumes witnessing a marginal increase of 1% during the year. Sales volumes marginally fell 0.4%, reflecting the timing of shipment to various destinations. Qamco’s joint venture remained successful in realising higher production and sales of VAP in comparison to the previous year.
The joint venture's cost of goods sold during 2021 was higher compared to the previous year, mainly on account higher raw material costs offset by favourable inventory movements and cost optimisation.
Finance cost for 2021 witnessed a decline of 32% on a yearly basis, on account of decline in interest rates and absence of unamortised portion of financing cost being written-off last year. The decline in finance cost contributed QR33mn positively to Qamco’s net earnings.
Qamco’s financial position continued to remain robust with cash and bank balances of QR1.5bn at the end of December 2021. It generated share of operating cash flows of QR917mn, with a share of free cash flows of QR693mn.