3rd Quarter Results

Media Release - October 28, 2018

Alba discloses its Financial Results for the Nine months of 2018

Q3 2018 and Nine Months of 2018 Financial Performance

Alba's top-line and bottom-line for the third quarter and nine months of 2018 were primarily driven by higher metal sales' volume and partially offset by higher Alumina Prices.

The Company generated a Net Income of BD 14.3 million (US$ 38 million) in the third quarter of 2018 versus BD 25.8 million (US$ 68.5 million) for the same period in 2017 down by 44% YoY due higher Alumina prices (60% YoY increase). With regards to Total Sales/Revenues, Alba reported BD 234.6 million (US$ 623.8 million) in Q3 2018, compared to BD 235.3 million (US$ 625.8 million) in Q3 2017. Earnings per share (EPS) in this quarter were fils 10 versus fils 18 in Q3 2017.

For the nine months of 2018, Alba's Net Income stood at BD 77.3 million (US$ 205.6 million), an increase of 12% YoY, compared to BD 69 million (US$ 183.5 million) in nine months in 2017. Total Sales/Revenues reached BD 699.8 million (US$ 1,861.2 million), up by 16% YoY, compared to BD 605 million (US$ 1,609.1 million). Earnings per share were fils 55 versus fils 49 for the nine months of the year 2017.

Alba's Total Assets as at September 30, 2018 reached BD 2,131.3 million (US$ 5,668.4 million), versus BD 1,686.1 million (US$ 4,484.5 million) for the same period of 2017, an increase of 26% YoY. Total Shareholders' Equity as at September 30, 2018 was BD 1,091.6 million (US$ 2,903.3 million), up by 4% YoY, when compared to BD 1,052.3 million (US$ 2,798.9 million).

Q3 2018 Industry Highlights

· Despite the trade-tensions, the global physical demand remain healthy with world consumption up by 4% Year-over-Year (YoY). MENA demand hit double-digit growth (+10% YoY) driven by major infrastructure spending in Saudi Arabia (+25% YoY). Demand in Asia up by 5% YoY led by Chinese consumption, Europe consumption up by 3% YoY thanks to sound demand across Building & Construction (B&C) and transport sectors while the demand in North America rose by 2% YoY driven by auto production (heavy-duty trucks) & construction sector.

· Global production grew at slow pace (+2% YoY); Asian supply was up by 3% YoY [Chinese supply rose by 2% YoY] while production in North America fell by 4% YoY due to the late ramp-up of New Madrid smelter. World market is in deficit with China (-333 Kt) & (-445 Kt) without China.

· Q3 2018 cash-average was US$ 2,056/t & LME inventories were 1.1 million metric tonnes as of September-end 2018.

· Alumina prices spiked upwards thanks to supply shortage and averaged US$ 540 per metric tonne.

Q3 2018 Alba Highlights

· Launch of the Summer Safety Campaign 'Safety Selfie'.

· Total Sales and Production volume touched 248,970 metric tonnes (MT) and 251,472 MT respectively.

· Alba Value-Added Sales averaged 60% of total shipments in Q3 2018.

· The achieved benefits of Titan - Phase III are US$ 83/MT

· Line 6 Expansion Project in progress:

- Line 6 Smelter [overall progress > 70%]; and

- Power Expansion Project [PS 5 & PDS overall progress: 72% & 92%]

2018 Alba Priorities

· Continued Focus on Safety initiatives 'Think ORANGE, Think Line 6 SAFE Start-up'.

· Exceed Projected Target Savings of Titan - Phase III [2018: 1 Million MT & US$ 60/t]/

· Leverage Strong Demand on Value-Added Sales.

· Focus on Future Upstream Opportunities.

· Prepare for the Safe Start-up of Line 6:

- Close Final Part of 2nd ECA-Covered Facility Tranche; and

- Start Commissioning PS 5 for the Start-up of Line 6

Commenting on Alba's financial performance for the 9 months of 2018, the Chairman of Alba's Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:

"Despite higher Alumina prices, Alba managed to deliver sound financial performance. As we progress with Line 6 Expansion Project, we look forward for the First Hot Metal by January 01, 2019 and safe start-up of Line 6.

Alba's Chief Executive Officer, Tim Murray added:

"The unprecedented spike in Alumina prices has a significant impact on the Aluminium industry and Alba was no exception. Despite the negative impact of Alumina prices, Alba was able to deliver solid financial results through our Project Titan Cost Improvement Program.

I would also thank our employees and contractors for taking extreme ownership on Safety during the difficult summer months."

Alba's Management will be holding a conference call on Wednesday 31, 2018 to discuss Alba's financial performance for the Third Quarter & Nine Months of 2018 as well as outline the Company's priorities for the remainder of the year.

http://www.rns-pdf.londonstockexchange.com/rns/5004F_1-2018-10-29.pdf

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About Alba

Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 981,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.

Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company's shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).

About Line 6 Expansion Project

Alba's Line 6 Expansion Project is one of the largest brownfield developments in the region. Expected to begin production by January 1st 2019, this Project will boost the smelter's per-annum production by 540,000 metric tonnes, bringing its total production capacity to 1.5 million metric tonnes per year.

With a CAPEX of approximately US$ 3 billion, the Line 6 Expansion Project involves the construction of a sixth pot line utilising EGA's proprietary DX+ Ultra Technology, a 1,792 MW Power Station (Power Station 5) and other industrial services.

Bechtel is the EPCM contractor for the Line 6 Expansion Project smelter. For Power Station 5 (PS 5), GE and GAMA Consortium was awarded the EPC contract, while Siemens is the Power Distribution System contractor. J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project.

In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

Alba successfully closed a US$ 1.5 Billion syndicated term-loan facility comprising two tranches: Conventional Facility & and Islamic Facility in October 2016, the 1st tranche of the Export Credit Financing of c. US$ 700 million for Euler Hermes and SERV-covered facilities in July 2017 and the first part of 2nd ECA-tranche of EUR 204.5 million for Bpifrance Assurance Export ("BpiAE") and Euler Hermes-covered facilities in April 2018. The Company is looking to secure the final part of 2nd ECA-tranche by Q3 2018.

The Front End Engineering Design (FEED) study for the Project was completed in the first quarter of 2017. The construction site-works have started in the second quarter of 2017 while the mass earthworks was completed by the end of the third quarter of 2017 as per schedule. Alba has also laid the First Concrete in Potline 6 Foundation in May 2017 wherein the concrete foundations will reach 85,000 m3 upon completion by December 2018. As of September 30, 2018, Line 6 Smelter's Overall Progress advanced by 70% (Engineering progressed by more than 93% while Contracts and Procurement advanced by 99%); Power Station 5 & Power Distribution System Overall Progress exceeded 72% and 94% respectively.

The Line 6 Expansion Project will make Alba the world's largest single-site aluminium smelter and be a significant economic boost for the Kingdom of Bahrain due to the many co-investment opportunities through local and foreign aluminium investments.

Alba External Grievance Mechanism

Alba, in line with the Performance Standards of the International Finance Corporation (IFC), a World Bank affiliated lending organisation, has launched its External Grievance Mechanism to receive and facilitate the resolution of the affected communities' concerns and grievances about Alba's Environment and Social (E&S) performance.

External grievances about Alba's E&S performance can be logged via the Alba Integrity Line - an independently operated confidential reporting hotline in multiple languages - via a toll-free phone system or via the intranet 24 hours a day, every day.

For further details, please contact:

Eline Hilal

Senior Manager, Investor Relations and Corporate Secretary

Tel: (973) 1783 5100

E-mail: [email protected]

Website: www.albasmelter.com.bh

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