EGA Records AED 1.84 Billion Net Profit Amidst Global Demand In H1 2024

Emirates Global Aluminium (EGA), the largest premium aluminium producer globally and the UAE's biggest industrial entity outside oil and gas, reported strong financial results for the first half of 2024. This performance was driven by sustained global demand for premium aluminium.

EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted EBITDA) reached AED 4.20 billion (US$1.14 billion), slightly up from AED 4.15 billion (US$1.13 billion) in the same period of 2023. Net profit stood at AED 1.84 billion (US$500 million), a slight decrease from AED 1.96 billion (US$533 million) in the first half of 2023.

The aluminium segment's adjusted EBITDA margin improved to 27.5 percent from 26.9 percent in the first half of 2023, positioning EGA ahead of its global industry peers.

During the first half of 2024, EGA produced 1.34 million tonnes of hot metal at its Al Taweelah and Jebel Ali smelters, compared to 1.32 million tonnes in the same period last year. The Al Taweelah alumina refinery produced 1.22 million tonnes of alumina, up from 1.15 million tonnes in the first half of 2023.

EGA sold 1.30 million tonnes of cast metal to 411 customers across 57 countries, slightly down from 1.32 million tonnes in the first half of the previous year. Notably, value-added products or ‘premium aluminium’ accounted for 82 percent of metal sales, up from 77 percent in the same period last year.

Strategic Developments

In May, EGA completed its acquisition of Leichtmetall, a European speciality foundry, marking its first strategic acquisition since its formation through the merger of Dubai Aluminium and Emirates Aluminium in 2014.

Abdulnasser bin Kalban, Chief Executive Officer of Emirates Global Aluminium, stated, "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."

Future Outlook

EGA is progressing with developing a recycling plant in the UAE as part of its strategy to meet growing global demand for low carbon primary and recycled aluminium over the coming decades.

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."

EGA’s local sales amounted to 149 thousand tonnes of metal to UAE customers during this period compared to 148 thousand tonnes in the first half of last year. This supports downstream industries' development within the UAE and contributes to achieving the UAE’s Operation 300bn industrial growth strategy.

The company also saw an increase in demand for billets by 18 percent year-on-year during this period.

EGA remains committed to maintaining or growing its market share in key markets and segments while optimising EBITDA contributions from value-added product sales.

With inputs from WAM