Alba Announces Full Year 2012 Results

FOR IMMEDIATE RELEASE

MANAMA (ALBH)

Aluminium Bahrain B.S.C (Alba) presents its financial results as per the International Financial Reporting Standards (IFRS) accounting rules. All investors and reporters are asked to read Alba's Full-Year 2012 Audited Financial Statements posted at www.albasmelter.com.

Alba's results for Full-Year 2012 are summarised below:

Alba Reports Full Year 2012 Results

·; 2012: Dividend of US$ 105 million proposed by the Board (of which US$ 52.6 million were paid as an interim dividend in August 2012) Click on, or paste the following link into your web browser, to view the associated PDF document.http://www.rns-pdf.londonstockexchange.com/rns/8647X_1-2013-2-14.pdf

·; 2012: Highest production in Alba's history

·; 2012: Bankable Feasibility Study for Line 6 expansion project commences

2012 Industry Highlights:

·; Aluminium demand still healthy with world consumption up by 3.9% year-on-year (YoY). Demand in North America continues to grow with 5.6% YoY driven by automotive and construction sectors; Asian consumption propelled by China (8% YoY) and India (6% YoY). MENA demand up by 5.5% YoY while demand in Europe down by 4.8% due to a decline in automotive production

·; World production growing at 3.3% and is expected to rise with greenfield projects ramp-up in the Middle East, Russia and India

·; Aluminium cash prices at the London Metals Exchange dropped by 16% in 2012 with an average cash price of US$ 2,019 mt versus US$ 2,398 mt in 2011

2012 Alba Highlights:

·; Alba achieved recurrent savings of US$ 40 million in 2012 ahead of the $30 million target

·; Alba increased production by 8,907 metric tonnes despite tough LME market conditions

·; Sales of Value-Added products reached 65% of total shipments in 2012 versus 62% in 2011

·; Pot Line 5 upgraded from AP30 to AP36 technology allowing an increase of current to 360 kA

·; Bechtel Canada was selected to perform the Bankable Feasibility Study (BFS) for Line 6 expansion with Dubal DX+ technology as the base for BFS

2012 Full Year Results:

Alba's sales for the full-year of 2012 were US$ 1,978 million, a decline of 16% on the back of low LME prices versus US$ 2,349 million in 2011. The company has registered a Net Income for 2012 of US$ 257 million vs. US$ 564 million in 2011 which is a drop of 54% YoY driven by lower LME prices and higher energy costs.

In 2012, the actual cash delivered to the shareholders was US$ 203 million vs. 267 million in 2011. The Board recommended an additional dividend of US$ 52 million bringing the total dividend for 2012 to US$ 105 million.

2013 Alba Priorities:

·; Accelerate AlbaSafeWay programme

·; Leverage high physical premiums in 2013 new contracts as well as maintain a sustained focus on Value-Added products

·; Complete the refinancing of US$ 169 million local bond facility in March 2013

·; Finalise long-term contract to secure gas and power as well gear-up for Pot Line 6 expansion project

Alba released its full year and fourth quarter 2012 results during a meeting of the company's Board of Directors on Wednesday, February 13, 2013.

Commenting on the full-year results, Alba's Chief Executive, Tim Murray said:

"Despite tough LME market conditions, Alba's resilient business model has enabled the company to achieve a healthy financial performance in 2012 thanks to the sustained focus on Operational Excellence and the support of our dedicated workforce.

As the Aluminium industry outlook looks positive, Alba is well-positioned to embark on 2013 thanks to the milestones achieved in 2012 which will lay the foundations for a better overall performance."

The Chairman of Alba's Board of Directors, Mahmood Hashim Al Kooheji added:

"Alba turned in yet another record-breaking year, with production reaching 890,217 metric tonnes in 2012. Amid the downtrend in LME prices, the company was still able to sustain its healthy performance - a testament on our ability to execute against strategy thanks to the leadership of our Executive Management Team and the support showed by Alba's workforce.

Furthermore, distributing a cash dividend of US$ 105 million for 2012 - 28 Fils per share - endorses the company's strong business fundamentals which continuously deliver value to its shareholders."

Alba's Chief Executive Officer, Tim Murrray, Acting Chief Finance & Supply Officer, Ali Al Baqali and Investor Relations Manager, Eline Hilal will be holding a series of meetings with investors in Bahrain, London and New York City. They will be making a presentation on the Full Year and Fourth Quarter Results, discuss Alba's performance for 2012 as well as outline the company's priorities and plans for 2013.

http://www.rns-pdf.londonstockexchange.com/rns/8647X_2-2013-2-14.pdf 

ENDS

Note:

Alba has been consistently ranked as one of the largest aluminium smelters in the world, and is known for its technological strength, global competitiveness and innovative policies. Alba produces more than 890,000 metric tonnes per annum of aluminium which meet or exceed the industry standard for purity, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium. It has also maintained a strong track record of operational safety and environmental compliance.

For further details, please contact Investor Relations Manager, Eline Hilal

Tel: (973) 17 835100 (direct)

Fax: (973) 17 833822

E-mail: eline.hilal@alba.com.bh

Date: February 13, 2013