Sustained global demand for premium aluminium boosts bottom line
Emirates Global Aluminium (EGA), the world’s largest premium aluminium producer and the biggest industrial company in the UAE outside oil and gas, today reported solid financial performance for the first half of 2024 amid sustained global demand for premium aluminium.
EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted EBITDA) was Dh4.20 billion ($1.14 billion), compared to Dh4.15 billion ($1.13 billion) in the first half of 2023.
Net profit was Dh1.84 billion ($500 million), compared to Dh1.96 billion ($533 million) in the equivalent period of 2023.
EGA’s aluminium segment adjusted EBITDA margin was 27.5 percent, compared to 26.9 percent in the first half of 2023, leading amongst global industry peers.
Abdulnasser bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said, “EGA continues to deliver competitive financial performance throughout the economic cycle, through our focus on operational excellence, controlling our costs, and our long-term commercial relationships with our global customers.
“The first half of 2024 saw our acquisition of Leichtmetall and progress in the development of our recycling plant in the UAE, important first steps in our strategy to grow EGA to meet expanding global demand for low carbon primary and recycled aluminium over the decades ahead. I look forward to further steps before the end of the year.”
Mohamed Almarzooqi, Acting Chief Financial Officer of Emirates Global Aluminium, added, “Our competitive operational and financial performance has enabled us to further improve our leverage position while delivering great returns for our shareholders. This means we are in a strong position to capitalise on the opportunities from the long-term growth of demand for low carbon primary and secondary aluminium.”
EGA sold 1.30 million tonnes of cast metal in the first half of 2024 to 411 customers in 57 countries, compared to 1.32 million tonnes in the first half of 2023.
Some 82 percent of metal sales were value-added products or’premium aluminium’ compared to 77 percent in the first half of 2023. EGA focuses on maintaining or growing relative market share in’premium aluminium’ in key markets and segments, while also optimising the EBITDA contribution of VAP sales. During the period, demand for billets was up 18 percent year-on-year.
EGA sold 149 thousand tonnes of metal to local customers in the UAE, compared to 148 thousand tonnes in the first half of 2023. EGA’s metal supply supports the development of downstream industries in the UAE, further enhancing EGA’s contribution to the achievement of the UAE’s Operation 300bn industrial growth strategy.
During the first half, EGA produced 1.34 million tonnes of hot metal at its smelters in Al Taweelah and Jebel Ali, compared to 1.32 million tonnes in the first half of 2023.
Al Taweelah alumina refinery produced 1.22 million tonnes of alumina during the first half of 2024, compared to 1.15 million tonnes in the equivalent period last year.
In May, EGA completed the acquisition of Leichtmetall, a European speciality foundry. This was EGA’s first strategic acquisition since the formation of the company through the merger of Dubai Aluminium and Emirates Aluminium in 2014.