Emirates Global Aluminium (EGA) reported a net profit of $1.61 billion (AED5.9 billion) in H1 2022, compared to $460 million (AED1.7 billion) in H1 2021.
EGA noted this is its best ever half yearly performance as the first half of 2022 exceeded the net profit of entire 2021.
A strong operational performance throughout the value chain enabled the company to capitalize on favorable market conditions.
EGA’s adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was a record $2.07 billion (AED7.6 billion) in H1 2022, compared to $950 million (AED3.5 billion) in H1 2021.
Cast metal sales increased by 11 percent to 1.31 million tons, compared to 1.18 million tons in the first half of 2021.
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 aluminum’ increased five percent to 1.07 million tons from 1.02 million tons in H1 2021.
Premium aluminum accounted for 82 percent of total metal sales, compared to 86 percent in H1 2021, with the company focusing on optimizing EBITDA contribution from sales amid the high volatility of alloy metal prices.
EGA’s aluminum segment EBITDA margin was 41 percent, compared to 32 percent in H1 2021, leading major global peers.
Al Taweelah alumina refinery’s production increased to 1.15 million tons of alumina from 1.09 million tons in H1 2021, despite a planned maintenance shutdown.
EGA sourced around 45 percent of the company’s total alumina needs from its own alumina refinery during the period.
Exports of bauxite ore from Guinea increased 11 percent to 6.49 million tons from 5.85 million tons in H1 2021.
Aluminum 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 realized price for the half-year was $3,063 per ton.
Abdulnasser bin Kalban, Chief Executive Officer of EGA, said, During H1 “we worked to de-bottleneck our operations, optimize our customer and product mix to maximize our revenue” with “cost control”, and lay ground for “future growth”.
“We will continue to focus on delivering competitive returns for our sector, however, the global aluminum market develops”, he added.
After the end of the half-year, EGA paid an interim dividend of $599 million (AED2.2 billion) to shareholders.
EGA supplied 141 thousand tons of metal to UAE customers, enabling the continuing success of an important industrial sector of the UAE. This was 11 percent of total metal sales.