Doha, Qatar: Qatar Aluminum Manufacturing Company Q.P.S.C., a 50 percent joint venture partner in Qatar Aluminum Company (Qatalum), yesterday reported a net profit of QR342m for the six-month period ended 30 June 2025, with improved earnings per share (EPS) of QR 0.061 compared to 0.042 in H1-2024.
The global macroeconomic landscape in the first half of 2025 has been shaped by a slower-than-anticipated pace of monetary easing. While inflation has moderated across key economies, central banks have largely maintained elevated interest rates in a bid to keep inflation under check. This cautious stance has weighed on investment sentiment and financing conditions across various industries, including metals. For aluminum, the higher cost of capital has influenced both supply-side expansion and downstream demand, particularly in interest-sensitive sectors.
Amid these headwinds, aluminum demand has remained resilient, supported by long-term structural drivers. The continued adoption of electric vehicles (EVs) and renewable energy technologies has sustained consumption. However, the construction sector—historically a key demand pillar—has remained muted.
QAMCO’s net profit recorded a strong year-on-year increase in the first half of 2025, primarily driven by higher revenues resulting from improved selling prices.
In the first half of 2025, QAMCO delivered robust financial results, supported by favorable pricing dynamics and disciplined cost management. The uplift in average selling prices fully offset the marginal decline in sales volumes. Additionally, savings in finance costs were realized, driven by refinancing of debt and the partial loan repayments at joint venture level.
During 2Q-2025, QAMCO reported a higher net profit compared to the previous quarter, primarily driven by an increase in sales volumes amid stronger market demand. This uplift in volume helped offset a marginal decline in average selling prices and a slight increase in the cost of goods sold. The increase in quarterly sales volume was largely attributed to heightened demand for foundry alloys, supported by a rebound in automotive production across European and Asia, along with the growing application of aluminum across various segments of the industry.
QAMCO’s financial position remained robust as of June 30, 2025, with substantial cash and bank balances, which includes its proportionate share of cash and bank balances from the joint venture. These balances were higher compared to the year-end 2024, reflecting prudent financial management at both QAMCO and its JV. This solid liquidity position, coupled with a lower share of JV debt, enabled the company to distribute 2H-2024 dividends amounting to QR 279 million during this year.
Additionally, QAMCO’s JV generated a healthy share of operating cash flow during the six-month period amounting to QR254m, with share of free cash flows amounting to QR187m.
QAMCO’s JV remains committed in maintaining high operational efficiency and competitiveness in production and operations. The continued emphasis on maintaining the highest standards for health and safety continues to be a core value. QAMCO JV’s commitment to health and safety measures reflects a dedication to ensuring asset reliability and achieving operational excellence.
Yesterday, the Board of Directors approved a total interim cash dividend distribution of QR240m equivalent to QR0.043 per share representing 4.3 percent of nominal share value for the six-month period ended 30 June 2025.
According to relevant regulations, the interim cash dividends will be paid to shareholders as at the close of trading on 14th August 2025. Edaa will handle the payment of interim dividends in accordance with applicable rules and regulations.
QAMCO will host an IR earnings call with investors to discuss its results for H1-2025, business outlook and other matters, on Monday 11th August 2025 at 1:30 p.m. Doha time. The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at QAMCO’s website.
