Qatar Aluminum Manufacturing Company (QAMCO) announced strong profits for the first half of the year. The company posted a net profit of QR342 million, reflecting a sharp rise compared to the same period last year. The profit growth came alongside an increase in earnings per share, which rose from QR0.042 to QR0.061.
The global economy remained cautious due to slower monetary easing and persistently high interest rates. This trend influenced investment sentiment across many sectors, including metals. Although construction remained weak, global aluminum demand stayed firm due to electric vehicles and renewable energy adoption.
Qatar Aluminum reported a solid financial performance, supported by higher selling prices and effective cost management. Average selling prices increased, fully offsetting a slight dip in sales volume. In addition, QAMCO reduced finance costs by refinancing debt and making partial repayments at the joint venture level.
Moreover, the second quarter brought higher profits compared to the first. A rise in aluminum sales volume helped balance out lower prices and rising production costs. Automotive production growth in Europe and Asia led to increased demand for foundry alloys, boosting QAMCO’s performance.
Qatar Aluminum’s financial position remains healthy, supported by strong cash and bank balances. These balances rose above last year’s levels, demonstrating sound financial strategy. Lower joint venture debt allowed the company to distribute QR279 million in dividends from the second half of last year.
During the six-month period, QAMCO’s joint venture generated QR254 million in operating cash flow. Free cash flows reached QR187 million, reflecting continued operational strength. The company aims to maintain high efficiency, with a focus on safety and production excellence.
QAMCO’s board approved an interim cash dividend of QR240 million, equal to QR0.043 per share. This payout represents 4.3% of the nominal share value. Shareholders registered by the announced trading deadline will receive the dividends under official market procedures.
The company will also hold a scheduled investor relations earnings call to review the financial results and business outlook. Management plans to engage stakeholders and highlight upcoming opportunities and challenges in the aluminum sector.
