Emirates Global Aluminium posts sharp rise in profits
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)