Qamco net profit jumps 44% to QR342 mn in first half of 2025

Qatar Tribune

3 days ago

Tribune News Network
Doha
Qatar Aluminum Manufacturing Company (Qamco) has announced a strong financial performance for the first half of 2025, posting a net profit of QR342 million, up 44 percent compared with QR238 million in the same period of 2024. The earnings per share rose to QR0.061 from QR0.042 last year, reflecting the company's improved margins and operationalefficiencies.
In recognition of the solid results, the company's board of directors approved the distribution of an interim cash dividend of QR0.043 per share, equivalent to QR240 million, representing around 70 percent of net earnings for the reporting period. Shareholders on record as of August 14 will be entitled to the dividend, which will be disbursed through Edaa in line with applicable regulations.
Qamco, which owns a 50 percent stake in Qatalum, one of the region's leading primary aluminum smelters, attributed the profit surge to higher average realized selling prices in international markets, supported by strong demand from sectors such as electric vehicles, renewable energy, and automotive manufacturing. Average prices climbed to $2,879 per metric tonne in the first half of 2025 from $2,485 a year earlier, providing a significant boost to revenues.
The company's share of joint venture revenue rose to QR1.70 billion from QR1.49 billion in the first half of 2024. Its share of EBITDA improved to QR574 million from QR 483 million, while production volumes remained stable at 342,000 tonnes versus 339,000 tonnes a year earlier. Sales volumes declined slightly to 324,000 tonnes from 329,000 tonnes, though the fall was more than offset by stronger pricing.
On a quarterly basis, Qamco posted a net profit of QR186 million in Q2, a 19 percent increase over QR 156 million in Q1. The earnings per share for Q2 stood at QR 0.033, compared with QR 0.028 in the previous quarter. The improvement was primarily driven by higher sales volumes, particularly of foundry alloys, which saw a rebound in demand from the global automotive industry in Europe and Asia. Although selling prices edged down slightly to $2,865 per tonne from $2,895 in Q1, stronger shipments supported quarterly profitability.
The company's balance sheet remained robust, with total assets standing at QR 6.94 billion at the end of June, up from QR 6.90 billion at the close of December 2024. Cash and bank balances increased to QR 1.73 billion from QR 1.69 billion, reflecting healthy cash generation.
Qamco's share of joint venture debt declined to QR 1.40 billion from QR 1.45 billion, underscoring prudent financial management and a commitment to deleveraging. During the first half, Qatalum generated QR 254 million in operating cash flows and QR 187 million in free cash flows, further strengthening liquidity.
From a macroeconomic perspective, global aluminum markets remained shaped by a complex interplay of demand recovery and monetary policy conditions. While inflation eased in key economies, central banks maintained cautious stances, with interest rates staying higher for longer than many investors had anticipated. This environment created challenges for investment sentiment and financing, but did not significantly dent aluminum demand, which remained resilient in high-growth sectors such as green energy, transportation, and packaging.
Demand from the construction sector, however, was muted, particularly in China, where the real estate sector continued to experience a sluggish recovery. Analysts believe this sectoral divergence in demand is likely to persist, with automotive and electric vehicle production driving the bulk of incremental aluminum consumption globally. Qamco benefitted from this trend by adjusting its product mix to capture demand in higher-margin segments such as foundry alloys and extrusion ingots.
Operationally, Qatalum maintained strong production efficiency and safety standards. The joint venture recorded zero heat-related incidents during the reporting period, a testament to the company's robust risk management framework and strict adherence to hazard prevention protocols. Safety remains a core pillar of Qamco's operational philosophy, given the energy-intensive and complex nature of aluminum smelting.
In a notable recognition of its operational excellence and commitment to quality, Qatalum received the 'Supplier of the Year 2024' award from Maxion Wheels Asia, a global leader in automotive wheel manufacturing. The award underscored Qatalum's reliability as a supplier to the automotive sector, reinforcing its standing as a trusted partner in global supply chains.
Qamco has also been working to enhance its environmental and sustainability credentials. Aluminum is a key enabler of the energy transition, given its lightweight properties and recyclability. By focusing on energy efficiency and environmentally responsible operations, Qamco aims to strengthen its role as a sustainable producer aligned with Qatar's broader industrial diversification goals.
Looking ahead, the company expressed cautious optimism, acknowledging that global uncertainties, including price volatility, interest rate trajectories, and geopolitical risks, could affect short-term demand patterns. Nevertheless, structural drivers such as electric vehicle adoption, renewable energy deployment, and continued expansion of the packaging sector are expected to support long-term aluminum consumption growth.
Qamco's management emphasized that the company's strategy will continue to prioritize value creation for shareholders by maintaining financial discipline, optimizing its product portfolio, and sustaining high operational standards. The strong liquidity position and reduced leverage provide the company with flexibility to weather potential challenges while continuing to reward shareholders through dividends.
To provide further insights into its financial and operational performance, Qamco will host an earnings call on August 11 at 1:30 pm Doha time. An accompanying investor presentation will be available on the company's website, offering additional details on financial results and market outlook.
By delivering a 44 percent surge in net profit, distributing an interim dividend that represents 70 percent of earnings, and maintaining one of the strongest balance sheets in Qatar's industrial sector, Qamco has reinforced its position as a key pillar of the country's non-hydrocarbon economy. The company's ability to navigate global headwinds, while capitalizing on opportunities in high-growth sectors, highlights its resilience and its growing importance in the international aluminum industry.