Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — 9M 2024 Earnings Presentation
36 slides from Qatar Aluminium Manufacturing's earnings presentation, Sep 30, 2024
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 September 2024
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 period ended in 30 September 2024) 8. CAPEX (2024F – 2028F) 9. Market statistics and
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 25.2% QAMCO 33.3% QAMCO ranks #1 QAMCO 24.3% QAMCO ranks #2 Peer 1 24.0% Peer 2 21.3% Peer 2 13.4% Peer 3 17.3% Peer 3 12.6% Peer 4 17.3% Peer 4 11.6% 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) 4,500 Aluminium LME spot prices ($/MT) 700 Alumina spot prices ($/MT) 4,000 650 600 3,500 550 3,000 500 2,500 450 2,000 400 350 1,500 300 1,000 250 Jan-20 Dec-20 Dec-21 Dec-22 Dec-23 Sept-24 Jan-20 De
Slide 17: QAMCO results
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the nine-month period ended 30 September 2024) 17
Slide 18: 9M-24 Results - At a Glance vs. 9M-23
CLASSIFICATION: C1 - CONTROLLED 9M-24 Results - At a Glance vs. 9M-23 Revenue -2% EBITDA +9% Net profit +21% QR 2,380 million QR 809 million QR 428 million Cost per EBITDA EPS ton -6% Margin vs. 30% QR 0.077 vs. QR 0.063 QR 8,448* 34% Average aluminium prices declined compared to the previous year
Slide 19: Operational Performance Review
CLASSIFICATION: C1 - CONTROLLED Operational Performance Review Production (MT’ 000) – 100% • 9M-24 vs 9M-23: Production volumes marginally inched higher compared to last year, due to higher amperage. • 3Q-24 vs 2Q-24: production volumes marginally up compared to the previous quarter. Sales volumes (
Slide 20: Financial Performance Review
CLASSIFICATION: C1 - CONTROLLED Financial Performance Review Share of Revenue (QR million) Net Profit (QR million) • 9M-24 vs 9M-23: Share of JV’s revenue marginally declined, • 9M-24 vs 9M-23: Profitability improved due to a combination of mainly due to lower avg realized selling price which was pa
Slide 21: Net Profit Variance Analysis: 9M-24 vs 9M-23
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis : 9M-24 vs 9M-23 (Amounts in QR’ million) QAMCO reported a robust increase in net profit compared to the same period of last year. Results were impacted by JV’s performance mainly due to: Unfavorable movements a) Lower average realized p
Slide 22: Net Profit Variance Analysis: 3Q-24 vs 2Q-24
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis : 3Q-24 vs 2Q-24 (Amounts in QR’ million) QAMCO reported a robust increase in net profit compared to the previous quarter. Results were impacted by JV’s performance mainly due to: Favorable movements a) Higher average realized prices. b)
Slide 23: Analysis of Average Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Average Selling Prices Selling prices ($/MT) – 9M-24 vs 9M-23 o YoY: Average selling prices marginally declined compared to 9M-23 due to persistent macroeconomic headwinds 0% affecting LME prices and Premiums. o LME Premiums declined mainly due to a LME ne
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 4,300 47% 46.0% 48% Primary Aluminium Price (USD/ton) 45% QAMCO’s JV EBITDA Margins (%) 3,800 43% 41% 41% 3,300 37% 38% 38% 36% 2,800 34% 35%
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 19% Qatar North America 4 4% Asia 13% 64% 25 QAMCO, IR Presentation 9M-24
Slide 26: QAMCO JV Volumes – Product Mix (%)
CLASSIFICATION: C1 - CONTROLLED QAMCO JV Volumes – Product Mix (%) Foundry alloys along with extrusion ingots (together referred to as value added or premium products) remains key products for QAMCO’s JV. 9M-24 QAMCO JV Sales 9M-23 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 10.00 QAR 7.3 bn 8.00 6.00 4.00 2.00 - Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Jun-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Jun-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Jun-22 Nov-22 Dec-22 Jan-23 Feb-23 M
Slide 29: CAPEX (2024-2028)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2024-2028) 29
Slide 30: CAPEX (2024-2028) – (QAMCO's Share)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2024-2028) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2024-28) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. CAPEX overview 2024 2025 2026 2027 2028 (QAR’ m) Pot relining 19 21 72 112 126 CAPEX <
Slide 31: Historical performance (2019 - 2023)
CLASSIFICATION: C1 - CONTROLLED Historical performance (2019 - 2023) 31
Slide 32: Key Performance Indicators
CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) +4% +2% +25% 653 655 662 666 677 648 651 649 669 660 3,279 2,638 2,621 666 2,098 1,854 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 202
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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