Q2 2026 Qatar Aluminum Manufacturing Co QPSC Earnings Call
Speaker #1: Hello, and thank you for standing by, ladies and gentlemen. Welcome to Qatar Aluminum. Please note that this call is being recorded. At this time, all participants are in listen-only mode.
Speaker #1: On today’s event, we are not seeking any questions. Thank you. Now, I would like to hand the call over to Dana. You may now begin.
Speaker #2: Hello, everyone. This is Dana Sowaidi from QNB Financial Services. I would like to welcome everyone to Qatar Aluminium Manufacturing Company's second quarter 2026 financial results conference call.
Dana Al Sowaidi: Hello, everyone. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to Qatar Aluminium Manufacturing Company's Q2 2026 financial results conference call. On this call from QatarEnergy's Privatized Companies Affairs, we have Saoud Abdulaziz Alabdulghani, Head, Investor Relations and Communications, and Ahmad Zakri Md Salleh, Assistant Manager, Financial Operations. I would like to turn the call over to Saoud to discuss the company's results. Please go ahead.
Dana Sowaidi: Hello, everyone. This is Dana Sowaidi from QNB Financial Services. I would like to welcome everyone to Qatar Aluminium Manufacturing Company's Q2 2026 Financial Results Conference Call. On this call from QatarEnergy's Privatized Companies Affairs, we have Saoud Abdulaziz Alabdulghani, Head, Investor Relations and Communications, and Ahmad Zakri Salleh, Assistant Manager, Financial Operations. I would like to turn the call over to Saoud to discuss the company's results. Please go ahead.
Speaker #2: On this call from Qatar Energy's privatized company affairs, we have Dr. Aziz Al-Abdulghani, Head of Investor Relations and Communications, and Ahmad Zakari Saleh, Assistant Manager of Financial Operations.
Speaker #2: I would like to turn the call over to Saud to discuss the company's results. Please go ahead.
Speaker #3: Thank you, Dana. Good afternoon, everyone, and thank you for joining us today. Before starting, I would like to remind everyone that this call is purely for the shareholders of Camco, and no media representatives should be attending this call.
Saoud Abdulaziz Alabdulghani: Thank you, Dana. Good afternoon, everyone, and thank you for joining us today. Before starting, I would like to remind everyone that this call is purely for the shareholders of QAMCO, and no media representatives should be attending this call. Additionally, please note that this call is subject to QAMCO's disclaimer statement, as detailed on slide 2 of the agenda. Moving into the call. On Thursday, 6 August 2026, QAMCO published its results for the six-month period ended 30 June 2026. During today's call, we will present these results and provide an update on key financial and operational highlights.
Saoud Abdulaziz Alabdulghani: Thank you, Dana. Good afternoon, everyone, and thank you for joining us today. Before starting, I would like to remind everyone that this call is purely for the shareholders of QAMCO, and no media representatives should be attending this call. Additionally, please note that this call is subject to QAMCO's disclaimer statement, as detailed on slide 2 of the agenda. Moving into the call. On Thursday, 6 August 2026, QAMCO published its results for the six-month period ended 30 June 2026. During today's call, we will present these results and provide an update on key financial and operational highlights. Kindly note that the Microsoft Teams link provided will display the investor relations deck as well as discuss the results. Today in this call, we have Ahmad Zakri, Assistant Manager of Financial Operation, and myself, Saoud Abdulghani, Head of Investor Relation and Communication. We will structure this call as follows.
Speaker #3: Additionally, please note that this call is subject to Camco's disclaimer statement as detailed on slide number 2 of the IR deck. Moving into the call, on Thursday, 6th of August, Camco published its results for the six-month period ended 30 June 2026, and during today's call, we'll present these results and provide an update on key financial and operational highlights.
Speaker #3: Kindly note that the Microsoft Teams links provided will display the investor relations deck as well as discuss the results. Today on this call, we have Ahmad Zakari, Assistant Manager of Financial Operations, and myself, Saud Abdulghani, Head of Investor Relations and Communications.
Saoud Abdulaziz Alabdulghani: Kindly note that the Microsoft Teams link provided will display the investor relations deck as well as discuss the results. Today in this call, we have Ahmad Zakri, Assistant Manager of Financial Operation, and myself, Saoud Abdulghani, Head of Investor Relation and Communication. We will structure this call as follows.
Speaker #3: We'll structure this call as follows: First, I'll provide a brief overview of Camco's ownership structure, its competitive strengths, and overall governance structure. Secondly, Ahmad will provide an overview of the microeconomic environment, followed by a summary of the financial and operational highlights of this period's financial results.
Saoud Abdulaziz Alabdulghani: First, I will provide a brief overview of QAMCO's ownership structure, its competitive strength, and overall governance structure. Secondly, Ahmad will provide an overview of the macroeconomic environment, followed by a summary of the financial and operational highlights of this period's financial results. To start with, the ownership structure of QAMCO is made up of QatarEnergy, which has 51% shareholding, and the remaining 49% making the free float on Qatar Stock Exchange, and is held by various domestic and international institutions, corporates, and individuals. QatarEnergy, being the founding shareholder of QAMCO, provides all the heads of its functions through a service level agreement, while the operation of Qatalum, the JV, is independently managed by its own board of directors, along with a senior management team.
Saoud Abdulaziz Alabdulghani: First, I will provide a brief overview of QAMCO's ownership structure, its competitive strength, and overall governance structure. Secondly, Ahmad will provide an overview of the macroeconomic environment, followed by a summary of the financial and operational highlights of this period's financial results. To start with, the ownership structure of QAMCO is made up of QatarEnergy, which has 51% shareholding, and the remaining 49% making the free float on Qatar Stock Exchange, and is held by various domestic and international institutions, corporates, and individuals. QatarEnergy, being the founding shareholder of QAMCO, provides all the heads of its functions through a service level agreement, while the operation of Qatalum, the JV, is independently managed by its own board of directors, along with a senior management team.
Speaker #3: To start with, the ownership structure of CAMCO is made up of Qatar Energy, which has 51% shareholding, and the remaining 49% making up the free float on the Qatar Stock Exchange.
Speaker #3: And it's held by various domestic and international institutions, corporates, and individuals. Qatar Energy, being the founding shareholder, Camco provides all the head office functions through a service level agreement, while the operation of Catalum, the AGV, is independently managed by its own board of directors, along with a senior management team.
Speaker #3: Camco holds a 50% stake in Catalum, which produces more than 670,000 tons of high-quality aluminium per year, mainly for customers in Asia, Europe, and North America.
Saoud Abdulaziz Alabdulghani: QAMCO holds a 50% stake in Qatalum, which produces more than 670,000 tons of high-quality aluminum per year, mainly for customers in Asia, Europe, and North America. The facilities include a carbon plant, casthouse, port, and storage facility, as well as a gas-fired power plant. Qatalum's product range includes standard ingots and value-added casthouse products such as extrusion ingots and primary foundry alloys, serving customers across key international markets. In terms of competitive strength, QAMCO joint venture is considered to be a low-cost aluminum smelter with a state-of-the-art production facility, assured feedstock supply via long-term agreements, with strong focus on health, safety, and environment. In addition, Qatalum has a diversified customer base, a strategic location close to key markets, a strong track record of competitive EBITDA margins, and a healthy share of operating cash flow generation.
Saoud Abdulaziz Alabdulghani: QAMCO holds a 50% stake in Qatalum, which produces more than 670,000 tons of high-quality aluminum per year, mainly for customers in Asia, Europe, and North America. The facilities include a carbon plant, casthouse, port, and storage facility, as well as a gas-fired power plant. Qatalum's product range includes standard ingots and value-added casthouse products such as extrusion ingots and primary foundry alloys, serving customers across key international markets. In terms of competitive strength, QAMCO joint venture is considered to be a low-cost aluminum smelter with a state-of-the-art production facility, assured feedstock supply via long-term agreements, with strong focus on health, safety, and environment. In addition, Qatalum has a diversified customer base, a strategic location close to key markets, a strong track record of competitive EBITDA margins, and a healthy share of operating cash flow generation.
Speaker #3: The facilities include a carbon plant, cast house, furnace, and storage facilities, as well as a captive gas-fired power plant. Qatalum's product range includes standard ingots and value-added cast house products, such as extrusion ingots and primary foundry alloys, serving customers across key international markets.
Speaker #3: In terms of competitive strength, Camco joint vendors are considered to be a low-cost aluminum smelter, with a state-of-the-art production facility. They assure stock supply via long-term agreements, with a strong focus on health, safety, and the environment.
Speaker #3: In addition, Qatar Aluminum has a diversified customer base, a strategic location close to key markets, a strong track record of competing with the margins, and a healthy share of operating cash flow generation.
Speaker #3: The IR deck provides additional details on the governance structure of Camco, including detailed aspects of the Camco Code of Corporate Governance. I will now hand over to Ahmad to continue the call.
Saoud Abdulaziz Alabdulghani: The article provides additional details on the governance structure of QAMCO, including details as per QAMCO Code of Corporate Governance. Now I'll hand over to Ahmad to continue the call.
Saoud Abdulaziz Alabdulghani: The article provides additional details on the governance structure of QAMCO, including details as per QAMCO Code of Corporate Governance. Now I'll hand over to Ahmad to continue the call.
Speaker #4: Thank you, Saud. Good afternoon, everyone. Thank you all for joining us today. The macroeconomic environment during the first half of 2026 continues to be shaped by the ongoing regional conflict, which impacted global commodity markets, including the aluminum industry.
Ahmad Zakri Md Salleh: Thank you, Saoud. Good afternoon, everyone. Thank you all for joining us today. The macroeconomic environment during H1 2026 continued to be shaped by the ongoing regional conflict, which impacted global commodity markets, including the aluminum industry. Continued disruption to trade flows, together with shipping and logistics challenges, contributed to market volatility throughout the period. Despite these challenges, underlying demand for aluminum remained resilient, and this is supported by continued activities across infrastructure development, construction, automotive, and energy transition projects. All of this contributed to continued upward pressure on aluminum prices during the period and reinforced the role of aluminum as a critical industrial material. In this environment, producers focused on operational discipline, cost management, and flexibility to navigate an increasingly complex and uncertain macroeconomic landscape.
Ahmad Zakri Salleh: Thank you, Saoud. Good afternoon, everyone. Thank you all for joining us today. The macroeconomic environment during H1 2026 continued to be shaped by the ongoing regional conflict, which impacted global commodity markets, including the aluminum industry. Continued disruption to trade flows, together with shipping and logistics challenges, contributed to market volatility throughout the period. Despite these challenges, underlying demand for aluminum remained resilient, and this is supported by continued activities across infrastructure development, construction, automotive, and energy transition projects. All of this contributed to continued upward pressure on aluminum prices during the period and reinforced the role of aluminum as a critical industrial material. In this environment, producers focused on operational discipline, cost management, and flexibility to navigate an increasingly complex and uncertain macroeconomic landscape.
Speaker #4: Continued disruption to trade flows, together with shipping and logistics challenges, contributed to market volatility throughout the period. Now, despite these challenges, underlying demand for aluminum remained resilient, and this is supported by continued activity across infrastructure development, construction, automotive, and energy transition projects.
Speaker #4: All of this contributed to continued upward pressure on aluminum prices during the period, and reinforced the role of aluminum as a critical industrial material.
Speaker #4: In this environment, producers focused on operational discipline, cost management, and flexibility to navigate an increasingly complex and uncertain macroeconomic landscape. From an operational perspective, the joint venture operated at reduced production capacity during the period due to the ongoing regional conflict and related shipping constraints.
Ahmad Zakri Md Salleh: From an operational perspective, the joint venture operated at reduced production capacity during the period due to the ongoing regional conflict and related shipping constraints. This resulted in lower production and sales volumes. However, these impacts were partially mitigated through the adoption of alternative logistics solutions. Against this backdrop, QAMCO reported net earnings of QAR 219 million for the six-month period ended 30 June 2026. This translates to an earnings per share of QAR 0.039, which represents a decrease of 36% compared to the same period last year. The decline was mainly attributable to lower sales volumes, reflecting reduced operational activity and ongoing shipping constraints, which outweighed the positive impact of higher average selling prices. Operating costs also declined, primarily driven by reduced sales volume and lower raw material costs. Share of revenue from the joint venture declined by 45% to QAR 932 million.
Ahmad Zakri Salleh: From an operational perspective, the joint venture operated at reduced production capacity during the period due to the ongoing regional conflict and related shipping constraints. This resulted in lower production and sales volumes. However, these impacts were partially mitigated through the adoption of alternative logistics solutions. Against this backdrop, QAMCO reported net earnings of QAR 219 million for the six-month period ended 30 June 2026. This translates to an earnings per share of QAR 0.039, which represents a decrease of 36% compared to the same period last year.
Speaker #4: This resulted in lower production and sales volumes. However, these impacts were partially mitigated through the adoption of alternative logistics solutions. Against this backdrop, Camco reported net earnings of 219 million Qatari riyals for the six-month period ended 30 June 2026. This translates to earnings per share of 0.039 Qatari riyals, which represents a decrease of 36% compared to the same period last year.
Speaker #4: The decline was mainly attributable to lower sales volumes, reflecting reduced operational activity and ongoing shipping constraints, which outweighed the positive impact of higher average selling prices.
Ahmad Zakri Salleh: The decline was mainly attributable to lower sales volumes, reflecting reduced operational activity and ongoing shipping constraints, which outweighed the positive impact of higher average selling prices. Operating costs also declined, primarily driven by reduced sales volume and lower raw material costs. Share of revenue from the joint venture declined by 45% to QAR 932 million.
Speaker #4: Operating costs also declined, primarily driven by reduced sales volumes and lower raw material costs. Share of revenue from the joint venture declined by 45% to 932 million Qatari riyal. Meanwhile, share of EBITDA decreased by 24% to 437 million Qatari riyal, while EBITDA margin improved to 47% compared to 34% in the first half of 2025.
Ahmad Zakri Salleh: Meanwhile, share of EBITDA decreased by 24% to QAR437 million, while EBITDA margin improved to 47% compared to 34% in H1 2025. This was supported by higher average selling prices and lower input costs. Despite the challenging operating environment, QAMCO maintains a strong financial position. As of 30 June 2026, cash and bank balances, including QAMCO's proportionate share of cash held by the joint venture, stood at QAR1.8 billion, demonstrating the company's strong liquidity position. On a quarter-on-quarter basis, QAMCO's net profit declined by 95% in Q2 2026 compared to Q1 2026, mainly due to a 79% drop in sales volumes. This impact, however, was partially offset by a 19% increase in average selling prices and lower operating costs during the period.
Ahmad Zakri Md Salleh: Meanwhile, share of EBITDA decreased by 24% to QAR437 million, while EBITDA margin improved to 47% compared to 34% in H1 2025. This was supported by higher average selling prices and lower input costs. Despite the challenging operating environment, QAMCO maintains a strong financial position. As of 30 June 2026, cash and bank balances, including QAMCO's proportionate share of cash held by the joint venture, stood at QAR1.8 billion, demonstrating the company's strong liquidity position. On a quarter-on-quarter basis, QAMCO's net profit declined by 95% in Q2 2026 compared to Q1 2026, mainly due to a 79% drop in sales volumes. This impact, however, was partially offset by a 19% increase in average selling prices and lower operating costs during the period.
Speaker #4: This was supported by higher average selling prices and lower input costs. Despite the challenging operating environment, Camco maintains a strong financial position. As of 30 June 2026, cash and bank balances, including Camco's proportionate share of cash held by the joint venture, stood at QAR 1.8 billion, demonstrating the company's strong liquidity position.
Speaker #4: On a quarter-on-quarter basis, Camco's net profit declined by 95% in the second quarter of 2026 compared to the first quarter of 2026, mainly due to a 79% drop in sales volumes.
Speaker #4: This impact, however, was partially offset by a 19% increase in average selling prices and lower operating costs during the period. Moving on, health and safety remained a core priority for the joint venture, with a strong focus on maintaining the highest operational standards, reflecting the joint venture's commitment to asset reliability and operational excellence.
Ahmad Zakri Salleh: Moving on, health and safety remained a core priority for the joint venture, with a strong focus on maintaining the highest operational standards, reflecting the joint venture's commitment to asset reliability and operational excellence. In summary, H1 2026 was a challenging period from a logistics standpoint. However, QAMCO's results also demonstrate the resilience of the business model, supported by higher aluminum prices, lower raw material costs, strong EBITDA margins, and a healthy liquidity position. With that, I now hand back the call to Saoud for closing remarks.
Ahmad Zakri Md Salleh: Moving on, health and safety remained a core priority for the joint venture, with a strong focus on maintaining the highest operational standards, reflecting the joint venture's commitment to asset reliability and operational excellence. In summary, H1 2026 was a challenging period from a logistics standpoint. However, QAMCO's results also demonstrate the resilience of the business model, supported by higher aluminum prices, lower raw material costs, strong EBITDA margins, and a healthy liquidity position. With that, I now hand back the call to Saoud for closing remarks.
Speaker #4: In summary, the first half of 2026 was a challenging period from a logistics standpoint. However, Camco's results also demonstrate the resilience of the business model, supported by higher aluminum prices, lower raw material costs, strong EBITDA margins, and a healthy liquidity position.
Speaker #4: With that, I now hand back the call to Saud for closing remarks.
Speaker #2: Thank you, Ahmad. With that, we conclude our call. We would like to thank our investors for their continued trust and support, and we look forward to speaking with you again during the next earnings call.
Saoud Abdulaziz Alabdulghani: Thank you, Ahmad. With that, we conclude our call. We'd like to thank our investors for their continued trust and support, and we look forward to speaking with you again during the next earning call. Thank you.
Saoud Abdulaziz Alabdulghani: Thank you, Ahmad. With that, we conclude our call. We'd like to thank our investors for their continued trust and support, and we look forward to speaking with you again during the next earning call. Thank you.
Speaker #2: Thank you.
Operator: Thank you all for joining. You may now disconnect.
Operator: Thank you all for joining. You may now disconnect.
