Doha: Qatar Aluminium Manufacturing Company’s (QAMCO) Joint Venture (JV), going forward, will remain focused on its five-year strategic plan and strengthen its market position said Chairman of the Board of Directors, QAMCO Abdulrahman Ahmad Al Shaibi. Addressing the shareholders during the Annual General Assembly Meeting, Abdulrahman Ahmad Al Shaibi said that the company would work relentlessly to enhance shareholder value, with a strategic intent to remain a cost-competitive aluminum producer and achieve operational excellence with higher safety and environmental standards.
Annual General Assembly Meeting approved the Board’s recommendation for a dividend payment of QR0.08 per share for 2021, representing 8 percent of the nominal share value. The Extraordinary General Assembly (EGM) approved an amendment to increase the non-Qatari ownership limit in the Company’s share capital from 49 percent to 100 percent, ensuring that all relevant requirements are fully met.
Addressing the shareholders the Chairman said that 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,” he said.
From the date of QAMCO’s incorporation, the Company has paid a total of QR362m in the form of dividends, despite the challenging business environment in previous years, equating to a payout of QR0.065 per share.
Given the current short to medium-term market outlook coupled with funding needs and CAPEX program planned for the upcoming years, the Board of Directors proposes to pay a total annual dividend distribution for the year ended 31 December 2021 of QR446m, equivalent to a payout of QR0.08 per share, representing a payout ratio of 53 percent of net earnings for 2021.
Addressing the shareholders, Mohammed Jaber Al Sulaiti, QAMCO Board Member and Manager Privatized Companies Affairs Dept., QatarEnergy said that being a cost-competitive aluminium smelter, 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.
Furthermore, 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.
He said that in addition, the JV ability to fast transition its product mix in line with market conditions, continue to provide an additional layer of flexibility to the JV in terms of production processes and supply chain management while ensuring products are produced and sold in line the market demand.
QAMCO’s improved financial results for 2021, was largely attributed to an overall growth in average realized selling prices which increased by 42 percent during the current year versus last year, and contributed QR932m positively towards net earnings of QAMCO for 2021 as compared to last year.
Production activity remained stable with volumes marginally increased by 1 percent during the current year, as compared to last year. Sales volumes marginally declined by 0.4 percent, consequently contributed QR11m negatively to QAMCO’s net profits for the current year versus 2020. Although sales volumes were slightly lower than last year, QAMCO’s JV remained successful in selling higher value-added products (VAP), while sales of standard ingots remained minimal during the current year. This production shift since latter part of last year has positively supported margins’ evolution for the JV.
He said that 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, partially offset by favorable inventory movements and cost optimization initiatives. On overall basis, increase in cost of goods sold contributed QR179m negatively to QAMCO’s net profits for the 2021 versus last year.
