Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — H1 2023 Earnings Presentation
36 slides from Qatar Aluminium Manufacturing's earnings presentation, Jun 30, 2023
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 June 2023
Slide 2: Disclaimer
CLASSIFICATION: C1 - CONTROLLED Disclaimer The company in which Qatar Aluminium Manufacturing Company Q.P.S.C. directly owns investment is a separate entity. In this presentation, “QAMCO” and “the Company” are sometimes used for convenience in reference to Qatar Aluminium Manufacturing Company Q.P.S
Slide 3: Table of Content
CLASSIFICATION: C1 - CONTROLLED Table of Content 1. QAMCO at a Glance 2. Ownership structure 3. Operations of joint venture 4. Competitive strengths 5. Peer review 6. Macroeconomic updates 7. QAMCO results (For the six-month period ended 30 June 2023) 8. CAPEX (2023F – 2027F) 9. Market statistics an
Slide 4: QAMCO at a Glance
CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance 4
Slide 5: QAMCO at a Glance: Overview
CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance Overview • Qatar Aluminium Manufacturing Company • QatarEnergy provides all of the head office Q.P.S.C (QAMCO) was incorporated on functions for QAMCO through a comprehensive December 3, 2018 and listed on Qatar service-level agreement. Stock Exchang
Slide 6: Ownership structure
CLASSIFICATION: C1 - CONTROLLED Ownership structure 6
Slide 7: Ownership Structure
CLASSIFICATION: C1 - CONTROLLED Ownership Structure QatarEnergy Public (51%) (49%) QAMCO Qatalum Joint Venture (50%) QAMCO holds 50% share of Qatar Aluminium Limited (“Qatalum” or “QAMCO JV” or “JV”) as a joint venture shareholder, which produces high-quality aluminium of more than 650,000 tons per
Slide 8: Operations of Joint Venture
CLASSIFICATION: C1 - CONTROLLED Operations of Joint Venture 8
Slide 9: QAMCO's Joint Venture
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture • Qatar Aluminium (Qatalum) is located in Qatar, the company benefits from access to one of the world’s largest and most competitively priced sources of energy which allows it to maintain one of the industry’s most competitive profit margins and
Slide 10: QAMCO's Joint Venture: Sales and Marketing
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture Sales and Marketing: • With a Marketing and Offtake Agreement, Hydro Aluminium is responsible for the offtake and marketing of 100% of Qatar Aluminium products. The Marketing and Offtake Agreement gives Qatar Aluminium (Qatalum) access to Hydro A
Slide 11: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths 11
Slide 12: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths Low cost State of the art production facility and technology deployed Assured feedstock supply and competitively priced energy smelter High focus on Health and Safety and Environment Proven Positive share of operating profit & competitive
Slide 13: Peer review
CLASSIFICATION: C1 - CONTROLLED Peer review 13
Slide 14: QAMCO's competitive positioning versus global peers
CLASSIFICATION: C1 - CONTROLLED QAMCO’s competitive positioning versus global peers Gross profit margin (%) EBITDA margin (%) Peer 1 38.0% Peer 1 35.7% Peer 2 21.6% QAMCO 30.3% QAMCO ranks #2 Peer 3 21.2% Peer 2 23.2% Peer 4 19.4% Peer 3 19.3% QAMCO 15.3% QAMCO ranks #5 Peer 4 15.4% Net profit margi
Slide 15: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates 15
Slide 16: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates Aluminium prices ($/MT) Alumina prices ($/MT) 4500 Aluminium LME spot prices ($/MT) 750 Alumina spot prices ($/MT) 4000 650 3500 3000 550 2500 450 2000 350 1500 1000 02/01/2020 02/01/2021 02/01/2022 02/01/2023 250 Jan-20 Dec-20 Dec-21 Dec-22 June
Slide 17: QAMCO results (six-month period ended 30 June 2023)
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the six-month period ended 30 June 2023) 17
Slide 18: 1H-23 results - At a Glance vs. 1H-22
CLASSIFICATION: C1 - CONTROLLED 1H-23 results - At a Glance vs. 1H-22 Revenue -25% EBITDA -44% Net profit -61% QR 1.6 billion QR 498 million QR 240 million RoAE: 9.8% Cost per EBITDA EPS ton -14% Margin vs. 42% QR 0.043 vs. QR 0.110 QR 9,143* 31% ▪ 1H-23 aluminum realized prices declined versus 1H-2
Slide 19: Operational Performance review
CLASSIFICATION: C1 - CONTROLLED Operational Performance review Production (MT’ 000) – 100% • 1H-23 vs 1H-22: Production volumes slightly inched higher compared to 1H-22, due to increase in liquid metal production amid higher amperage. • 2Q-23 vs 1Q-23: Production volumes remained flat compared to 1Q
Slide 20: Financial performance review
CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) QAMCO’s Net Profit (QR million) 85 • 1H-23 vs 1H-22: Share of JV’s revenue declined, mainly due to • 1H-23 vs 1H-22: Profitability declined mainly due to lowered revenue, lower selling price trajectories along
Slide 21: Net Profit Variance Analysis 1H-23 vs. 1H-22
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 1H-23 vs. 1H-22 (Amounts in QR’ million) QAMCO reported a net profit of QR 240 million, a decline in profitability by 61% compared to 1H-22. QAMCO’s 1H-23 results were impacted by JV’s performance mainly due to: Unfavorable movements a)
Slide 22: Net Profit Variance Analysis 2Q-23 vs. 1Q-23
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 2Q-23 vs. 1Q-23 (Amounts in QR’ million) QAMCO reported a net profit of QR 147 million in 2Q-23, an increase of 58% compared to 1Q-23. QAMCO’s 2Q-23 results were impacted by JV’s performance mainly due to: Unfavorable movements a) Higher
Slide 23: Analysis of Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – 1H-23 vs 1H-22 o YoY: Average selling prices declined versus 1H-22 due to persistent macroeconomic headwinds affecting -36% LME prices. o LME premiums declined mainly due to a LME negative macroeconomic context weighi
Slide 24: Analysis of EBITDA margins
CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins Despite macroeconomic volatilities, QAMCO’s JV EBITDA margins continue to remain robust & resilient Recent decline in EBITDA margins is mainly due to declining selling prices, while raw material price remained stronger despite recent shortfa
Slide 25: Geographic analysis – QAMCO JV revenue
CLASSIFICATION: C1 - CONTROLLED Geographic analysis – QAMCO JV revenue Asia remained QAMCO JV’s largest market, while its presence in Europe and US continued to be substantial Europe 20% Qatar North America 3% Asia 21% 56% 25 Revenue for YTD June-2023 QAMCO, IR Presentation, H1-23
Slide 26: QAMCO JV revenue – product mix (%)
CLASSIFICATION: C1 - CONTROLLED QAMCO JV revenue – product mix (%) ▪ Foundry alloys along with extrusion ingots (together referred to as value added or premium products) remains key products for QAMCO’s JV. 1H-23 QAMCO JV Sales 1H-22 QAMCO JV Sales Volumes – Product mix (%) Volumes – Product mix (%)
Slide 27: Market Statistics and dividend distribution
CLASSIFICATION: C1 - CONTROLLED Market Statistics and dividend distribution 27
Slide 28: Market Statistics and Dividends
CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends 16.00 Market Cap (QR Billion) 14.00 12.00 QAR 7.09 bn 10.00 8.00 6.00 4.00 2.00 - Mar-20 Jul-19 Apr-20 May-20 Jul-20 Mar-21 Apr-21 May-21 Jul-21 Mar-22 Apr-22 May-22 Jul-22 Mar-23 Apr-23 May-23 Oct-19 Feb-20 Oct-20 Feb-21 Oct-21 Feb-22
Slide 29: CAPEX (2023-2027)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2023-2027) 29
Slide 30: CAPEX (2023-2027) – (QAMCO's Share)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2023-2027) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2023-27) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. CAPEX overview 2023 2024 2025 2026 2027 (QAR’ m) Pot relining 72 19 31 79 133 CAPEX <$
Slide 31: Historical performance (2019 - 2022)
CLASSIFICATION: C1 - CONTROLLED Historical performance (2019 - 2022) 31
Slide 32: Key Performance Indicators
CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) 666 • 2022 Production remained highest since QAMCO’s incorporation. • 2022 Selling prices remained highest amid constructive macroeconomic context. Share of Rev
Slide 33: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure 33
Slide 34: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Board structure Board committees • QAMCO Board of Directors consists of six (6) • The Board of Directors established Board Directors, all were appointed by the Special Committees and Special Committees to carry Shareholder “QatarEnergy”. out speci
Slide 35: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Remuneration Shareholders’ rights Board of Directors • The Company’s Articles of Associations provide for • The Company has developed a periodically the rights of shareholders, particularly the rights to revisited remuneration policy for Board mem
Slide 36: THANK YOU
THANK YOU For further information, Qatar Aluminium Manufacturing Company can be contacted as follows: Telephone: (+974) 4013 2277 Fax: (+974) 4013 9750 E-mail: qamco.investorrelations@qataenergy.qa or qamco@qataenergy.qa Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa
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