Emi­rates Global Alu­minium posts sharp rise in prof­its

Arab News - - BUSINESS - ARAB NEWS

DUBAI: Emi­rates Global Alu­minium (EGA), one of the world's largest alu­minum pro­duc­ers, re­ported a 59 per­cent in­crease in 2017 net profit, thanks to strong pro­duc­tion and higher metal prices.

The UAE-based pro­ducer re­ported net in­come of 3.3 bil­lion dirhams ($898.3 mil­lion) last year, from rev­enue of 25.5 bil­lion dirhams — a 20 per­cent in­crease on 2016 sales.

“Record cast metal pro­duc­tion of 2.6 mil­lion tons from 2.5 mil­lion tons in 2016 and a con­tin­u­ing fo­cus on cost con­trol and op­er­a­tional ef­fi­ciency con­trib­uted to EGA's strong per­for­mance amid fa­vor­able con­di­tions in the global alu­minum mar­ket,” the com­pany said in a state­ment.

Sales of value-added prod­ucts to 336 cus­tomers in 54 coun­tries, which at­tract con­sid­er­ably higher pre­mi­ums over LME prices, in­creased by 87,000 tons in 2017 to 2.1 mil­lion tons, rep­re­sent­ing 82 per­cent of to­tal turnover for the year.

“One area of par­tic­u­lar suc­cess in 2017 stems from our de­vel­op­ment over more than 25 years of our own en­ergy ef­fi­cient smelt­ing tech­nol­ogy. All our re­duc­tion cells run on EGA tech­nol­ogy, re­duc­ing costs and en­vi­ron­men­tal emis­sions,” said Ab­dulla Kal­ban, EGA's man­ag­ing di­rec­tor and CEO.

“We also con­tin­ued to progress well in 2017 on our strate­gic growth projects that are ex­pand­ing our busi­ness up­stream to se­cure the nat­u­ral re­sources we need. Once com­plete, Al-Tawee­lah alu­mina re­fin­ery in Abu Dhabi and GAC, our baux­ite min­ing project in the Re­pub­lic of Guinea, will de­liver value for decades to come as well as cre­ate fur­ther long-term growth op­por­tu­ni­ties for EGA.”

Work on EGA's $3.3 bil­lion Al-Tawee­lah alu­mina re­fin­ery project is 76 per­cent com­plete and first alu­mina is ex­pected dur­ing the first half of 2019, the com­pany said.

Once fully op­er­a­tional, the Al-Tawee­lah alu­mina re­fin­ery would meet 40 per­cent of EGA's re­quire­ments, help­ing to se­cure the com­pet­i­tive sup­ply of the feed­stock for alu­minum smelters.

The $1.4 bil­lion Guinea Alu­mina Cor­po­ra­tion baux­ite mine project, mean­while, is 37 per­cent com­plete, with first baux­ite ex­ports ex­pected dur­ing the sec­ond half of 2019.

Emi­rates Global Alu­minium re­ported a rise in an­nual prof­its, driven by stronger pro­duc­tion and im­proved global prices. (Photo cour­tesy of EGA)

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