Alba Reports Q1 2014 Results

Media Release - May 8, 2014

Alba Reports Q1 2014 Results: Strong operational performance despite low LME price

· Q1 2014: LME price drops 15% year-on-year

· Q1 2014: Aluminium physical demand remains healthy

Q1 2014 Industry Highlights

· World consumption up by 5.6% year-on-year while world market production rose by 5.5% YoY as compared to Q1 2013 and is expected to grow in the short-run with the fast ramp-up of Greenfield smelters in China and India

· Asian demand propelled by China (+10% YoY); MENA consumption continues to grow (+5% YoY) supported by large infrastructure spending in Saudi Arabia. North America demand up by 2% YoY thanks to the new investments in extrusion industry and automotive sector; Europe demand up by 2% YoY driven by vehicle production as well as an increase in automotive body sheets

· The LME cash average was at US$ 1,708 metric tonnes (mt) in Q1 2014 compared to US$ 2,001 mt for the same period last year

Q1 2014 Alba Highlights

· Improved Safety performance - Alba achieved 2 million hours without an LTI

· Significant uplift in physical premiums (38% YoY)

· Alba sales figures (mt) up by 3.1% YoY while production figures up by 2.1% YoY on the back of strong operational performance

· Sales of Value-Added products represented 66% of total shipments - stable performance versus Q1 2013

Q1 2014 Financial Results

Alba's sales for the first quarter of 2014 reached US$ 464 million (BD 174.5 million) compared to US$ 498 million (BD 187.2 million) in Q1 2013 due to lower LME prices (down by 15% YoY). The company has registered a Net Income of US$ 46 million (BD 17.3 million) vs. US$ 108 million (BD 40.6 million) for the same period in 2013 - down by 57% YoY on the back of 15% decrease in LME prices.

In March 2014, Alba paid US$ 82 million (BD 30.8 million) as the final dividend for 2013 bringing the total dividend for 2013 to US$ 135 million (BD 50.8 million).

2014 Alba Priorities

· Continuous focus on Safety and training initiatives

· Deliver on Project Titan

· Leverage physical premiums

· Complete Line 6 Bankable Feasibility study (BFS) within the first half of 2014

Aluminium Bahrain B.S.C. (Alba) announced the release of its first quarter of 2014 results on Wednesday, May 7, 2014.

Commenting on Q1 2014 results, Alba's Chief Executive, Tim Murray said:

"Alba had strong operational performance despite a significant drop in LME prices. Alba was able to increase free cash flow for the quarter in the face of difficult market conditions.

For the remainder of 2014, Alba will focus on leveraging the strong physical premiums and accelerate our initiatives under Project Titan".

The Chairman of Alba's Board of Directors, Daij Bin Salman Bin Daij Al Khalifa added:

"Alba continues to make money and maintain strong operational fundamentals despite the very difficult LME price environment. I would also like to thank all the employees of Alba for their continued efforts to improve safety."

Alba's Chief Executive Officer, Tim Murray, Chief Financial Officer, Ali Al Baqali and Investor Relations Manager, Eline Hilal will be will be holding a conference call on Monday May 12, 2014 to discuss Alba's performance for the first quarter of 2014 as well as outline the company's priorities for the remainder of this year.

ENDS

Photo Caption:

Picture 1: Alba's Chairman, Daij Bin Salman Bin Daij Al Khalifa

Picture 2: Alba's Chief Executive, Tim Murray

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 890,000 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 Investment Company (20.62%) and the General Public (10%).

About Arabal

The Arab International Aluminium Conference (ARABAL) is the premium trade event for the Middle East's aluminium industry and the only conference in the world attended by every single primary aluminium manufacturer in the region. Therefore, it is the conference of choice for anyone interested in the Middle East aluminium industry.

ARABAL first began in 1983 with Kuwait Aluminium Co. bringing together the leading figures in Middle East Aluminium to strengthen ties and discuss the issues of the day to provide an overview about the entire aluminium industry. Over the past 29 years, it has become an event of international repute, bringing together leaders from the aluminium industry across the world to attend, speak, and exhibit, at the event.

For further details, please contact:

Eline Hilal

Investor Relations Manager

IR Department

Tel: (973) 1783 5100

Fax: (973) 1783 3822

E-mail: [email protected]

Website: www.albasmelter.com.bh

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