Qamco posts record net profit of QR919 million for 2022

Qatar Aluminum Manufacturing Company (Qamco), a 50 percent joint venture partner in Qatar Aluminum Company (Qatalum), on Thursday reported a record net profit of QR919 million for 2022 with earnings per share (EPS) of QR 0.165.

Qamco’s improved set of financial results for the current year versus last year were largely attributed to overall growth in average realized selling prices, along with marginal growth in sales volumes. The average realised selling price witnessed an increase of 24 percent during the financial year 2022 versus last year to reach $3,279/MT and contributed QR 748 million positively to the net profit for the year ended 31 December 2022 in comparison to the last year.

Production levels remained relatively flat and an increase of 1 percent was noted in the production volumes for the current year versus last year. Sales volumes increased by 3 percent versus last year, due to comparatively higher sales of standard ingots versus last year. However, as a primary strategy, Qamco’s JV strives to maximize sales of value-added products.

Higher premiums were realised during the current year versus last year, mainly linked to better market sentiments which prevailed on a year-on-year basis, mostly during the early part of the year.

Cost of goods sold for the current year remained higher versus last year, mainly on account higher raw material costs and unfavorable inventory movements due to higher sales volumes. On overall basis, the increase in cost of goods sold contributed QR 697 million negatively to the net profits for the year ended 31 December 2022 versus last year.

Compared to 3Q-22, Qamco’s net profits for 4Q-22 declined by 39 percent. A key contributor towards this decline in profitability was the lower selling prices realized during 4Q-22 versus 3Q-22, which decreased by 18 percent on quarter-on-quarter basis. Additionally, the bottom-line profitability was negatively affected due to higher operating cost reported during 4Q-22 versus 3Q-22, mainly linked to unfavorable inventory movements on account of higher sales volumes reported during 4Q-22.