EGA delivers net profit of Dh5.9 billion in H1

Emirates Global Aluminium, a major industrial player in the UAE, had its best half-year ever, and its H1-2022 net profit is now higher than its full-year 2021 total. The company's net profit was Dh5.9 billion, compared to Dh1.7 billion in H1 2021.

A net profit of Dh5.9 billion, as opposed to Dh1.7 billion a year earlier, was achieved because of “strong operational performance.” (The total for the entire 2021 year was Dh5.5 billion).

“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,” said Abdulnasser Bin Kalban, CEO of EGA. “We will continue to focus on delivering competitive returns for our sector, however, the global aluminium market develops.”

EGA's adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (adjusted EBITDA) was a record Dh7.6 billion in the first half of 2022, compared to Dh3.5 billion, in the same period last year.

EGA implemented production creep plans and mitigation measures for global logistics challenges. It 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.

Premium aluminium accounted for 82 per cent of total metal sales, compared to 86 per cent in H1 2021, with the company focusing on optimising EBITDA contribution from sales amid the high volatility of alloy metal prices.

EGA's aluminium segment EBITDA margin was 41 per cent, compared to 32 per cent in H1 2021, leading major global peers.

Aluminium prices reached a decade-high during the first half of 2022. While the benchmark London Metal Exchange price declined later in the period, EGA's average realised price for the half-year was $3,063 per tonne.