UAE’s Emirates Global Aluminium reports $1.6bn in net profit for H1 2022

UAE-based industrial company Emirates Global Aluminium (EGA) has reported a net profit of Dhs5.9bn ($1.6bn) in the first half of 2022, compared to Dhs1.7bn ($473m) recorded in H1 2021.

The company’s first half 2022 net profit exceeded the net profit for the entire last year ($1.5bn). Meanwhile, its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) equalled Dhs7.6bn, compared to Dhs3.5bn ($950m) in H1 2021.

EGA delivered a record first half financial performance in 2022, with strong operational performance throughout the value chain, enabling capitalisation on favourable market conditions.

Read more here: https://t.co/ZcskQidwjG pic.twitter.com/1qqbbcjiVI

— Emirates Global Aluminium (@egaofficial) August 23, 2022

Its revenue for the first half of the year stood at Dhs18.3bn ($5bn) compared to Dhs10.8bn ($2.9bn) in H1 2021.

Sales of cast metal increased by 11 per cent to 1.31 million tonnes, compared 1.18 million tonnes in the first half of 2021. EGA supplied more than 400 customers with metal in over 50 countries. Sales of value-added products or ‘premium aluminium’ increased five per cent to 1.07 million tonnes from 1.02 million tonnes in H1 2021.

After the end of the first half of 2022, EGA made a Dhs2.9bn ($800m) corporate debt pre-payment. Since January 2021, the company has pre-paid Dhs6.5bn ($1.8bn) in total, while making Dhs968m ($263m) in scheduled payments, it said in a statement.

EGA’s outstanding corporate debt currently stands at Dhs17.4bn ($4.7bn), while additionally, EGA’s subsidiary Guinea Alumina Corporation has an outstanding project financing of Dhs2.4bn ($662m). EGA’s net debt to adjusted EBITDA ratio is 1.2x.

After the end of the half, EGA also paid an interim dividend of Dhs2.2bn ($600m) to its shareholders.

Abdulnasser Bin Kalban, chief executive officer of EGA, said: “Our net profit for the first half exceeded net profit for the entirety of last year. During the first half we worked to debottleneck our operations, optimise our customer and product mix to maximise our revenue, robustly control our costs, and set the course for future growth. We will continue to focus on delivering competitive returns for our sector, however the global aluminium market develops.”

“Aluminium demand is closely correlated to the health of the global economy,” said Zouhir Regragui, chief financial officer of EGA. “The economic outlook for the remainder of the year is uncertain but market conditions are likely to be less favourable than in the first half. We will maintain our focus on what we control – operational excellence, maximising the value of our production through our marketing strategy, controlling our overheads, and closely managing our working capital – to continue to deliver excellent returns compared to our sector.”

EGA also announced a strategic initiative with Abu Dhabi National Energy Company (TAQA), Dubal Holding and Emirates Water and Electricity Company that would expand clean energy development, advance power assets and generation optimisation, and decarbonise EGA’s aluminium production, the statement added.

EGA and shipping giant, Kawasaki Kisen Kaisha will also cooperate on research and pilot projects to decarbonise bulk cargo shipping, it was announced last month.

Read: Emirates Global Aluminium, Kawasaki Kisen Kaisha partner to decarbonise bulk cargo shipping