Aluminium Company of Egypt “Egyptalum” is expecting to report EGP 993.773 million in net losses during fiscal year (FY) 2019/20, compared to the EGP 870.927million net profit in FY 2018/19.
On 25th August’20, the aluminium company reported in a statement to the Egyptian Exchange (EGX), where the company revealed that its revenues dropped to EGP 7.254 billion in the period from July 2019 to June 2020. This compared to the EGP 12.188 billion from July 2018 to June 2019.
The company imputed its losses to the increase in production costs, particularly concerning electricity consumption, during FY 2019/20.
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Furthermore, the shrink in the US dollar exchange rate against the Egyptian pound has contributed to these losses, alongside the sharp drop in metal prices at the London Metal Exchange.
Another cause behind the company’s losses incorporates the low returns on financial investments due to their low revenue rates, and the company allocating a large part of its financial investments to pay off its financial obligations.
COVID-19 pandemic has also impacted the company’s revenues during the second half of FY 2019/20, compared to the corresponding period of the previous year.
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