EGA posts Dh1.2B income on higher material prices

Our strategic upstream growth projects are nearly complete and will both begin production this year

Abdulla Kalban, MD, CEO of EGA

dubai — Emirates Global Aluminium (EGA) reported on Monday a net income of Dh1.2 billion for 2018, down 64 per cent compared to 2017. The world’s largest ‘premium aluminium’ producer said the decline in income despite strong operational performance was mainly due to higher raw material prices amid challenging market conditions.

In a statement, EGA said revenue increased to Dh23.5 billion in 2018, compared to Dh20.5 billion in 2017. The increase in revenue was driven by higher sales volumes, higher benchmark price and product premiums and an increase in value-added product sales by 161 thousand tonnes to a record 2.3 million tonnes.

EGA, the largest industrial company in the UAE outside oil and gas, distributed Dh1.1 billion to its shareholders in 2018. Adjusted earnings before interest, taxes, depreciation and amortisation stood at Dh4.4 billion, a decrease of 35 per cent from Dh6.6 billion.

Abdulla Kalban, EGA’s managing director and chief executive officer, said the aluminium industry is going through a challenging period with higher prices for our raw materials and lower benchmark prices for finished metal.

“Our strategic upstream growth projects, which will significantly reduce our exposure to volatile raw material prices, are nearly complete and will both begin production this year,” said Kalban.

“During 2018, two of our colleagues lost their lives in an industrial incident in Jebel Ali, which is unacceptable to everyone at EGA. We investigated this incident thoroughly and took strong action across our business to address all its root causes,” said Kalban.

“EGA’sexposuretorawmaterialmarket prices will be reduced significantly once EGA’s alumina refinery in Abu Dhabi and bauxite mining project in the Republic of Guinea start-up and reach full production,” the company said.