EGA’s net profit exceeds previous record in only six months of 2022 amounting to AED 5.9 billion

Emirates Global Aluminium (EGA), the biggest premium aluminium producer in the world, has announced its best-ever half-year results, driven by strong operational performance across the value chain resulting in robust earnings. EGA has reported a net profit of AED 5.9 billion for H1 2022, which exceeds the net profit of AED 5.5 billion in the entire year of 2021 and stands 247 per cent higher than AED 1.7 billion in H1 2021.

Adjusted EBITDA was a record at AED 7.6 billion in the first half of 2022, compared to AED 3.5 billion during the same period last year. Revenue totalled AED 18.3 billion, up by 69.44 per cent from AED 10.8 billion a year ago.

This record-breaking fiscal result could be attributed to increased sales, shipments, and production across the value chain. EGA has mentioned the growing cast metal sales of 11 per cent to 1.31 million tonnes in H1 2022, compared to 1.18 million tonnes in 1H2021. Sales of value-added products or premium aluminium rose by 5 per cent to 1.07 million tonnes from 1.02 million tonnes. Premium aluminium accounted for 82 per cent of the total metal sales against 86 per cent in H1 2021.

The company’s exports of bauxite ore from Guinea grew by 11 per cent to 6.49 million tonnes in 1H2022 from 5.85 million tonnes in 1H2021. Production at Al Taweelah alumina refinery increased to 1.15 million tonnes from 1.09 million tonnes a year ago, despite a planned maintenance shutdown. EGA sourced 45 per cent of its total alumina output during the period, while the remaining 55 per cent was shipped to different locations.

Aluminium price surge also contributed fairly to EGA’s record earnings. The company’s average realised price for the half-year was $3,063 per tonne.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “After our record performance in 2021, I noted that EGA could still do better and indeed we improved our operational performance throughout the value chain from mining to outbound logistics for finished metal. This enabled us to capitalise on strong market conditions. Our net profit for the first half exceeded net profit for the entirety of last year.”

He added, “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. We will continue to focus on delivering competitive returns for our sector, however the global aluminium market develops.”

EGA also achieved a technology milestone during 1H2022, successfully starting up the company’s proprietary DX+ Ultra technology with a modified lining at 500KA, the first time this amperage achieved in the Middle East.

EGA’s Lost Time Injury Frequency Ratio was 0.3 per million hours worked, up from 0.22 per million hours worked in the first half of 2021.