Media ININ Economy We Trust
August 31
Emirates Global Aluminium, the largest producer of high-quality aluminum in the world, announced the achievement of competitive financial performance in the aluminum sector during the first half of the year 2023 with the improvement of market conditions.
Adjusted EBITDA was 4.2 billion dirhams ($1.1 billion) in the first half of 2023, compared to 7.6 billion dirhams ($2.1 billion) in the first half of 2022 and 4.8 billion dirhams. One billion dirhams ($1.3 billion) in the second half of 2022.
The net profit of Emirates Global Aluminum amounted to 2 billion dirhams (533 million dollars), compared to 5.9 billion dirhams (1.6 billion dollars) in the first half of 2022, while the net profit amounted to 1.5 billion dirhams (409 million dollars). In the second half of 2022, after recognizing an impairment loss of 1.1 billion dirhams ($288 million) for the mining assets and equipment of Guinea Alumina Corporation.
Adjusted EBITDA margin in the company’s aluminum segment was 27%, as the company continued to be ahead of its global peers. In light of the exceptional market conditions during the first half of 2022, the adjusted EBITDA margin reached 41%, while it reached 28% in the second half of 2022.
Average price
The average price of a ton of Emirates Global Aluminum metal on the London Stock Exchange reached $2,359 per ton during the period, compared to $3,063 per ton during the first half of 2022 and $2,392 per ton during the second half of 2022.
Abdul Nasser bin Kalban, CEO of Emirates Global Aluminium, said: “We aim at Emirates Global Aluminum to achieve competitive performance in the aluminum sector throughout the economic cycle, and we reached this goal in the first half of the year 2023, as we achieved strong financial results with the improvement of economic conditions.” The market has experienced significant fluctuations over recent years, which reflects the company’s flexibility and strategic approach.” He added, “I am sure that we will continue our competitiveness in the second half, as we benefit from our efforts over the past years to enhance our revenues, reduce our costs, focus on operational excellence, and consolidate our partnerships with our global customers.”
By paying off debts
For his part, Zuhair Al Rajraji, Chief Financial Officer of EGA, said: “We have been able to improve our balance sheet for future growth thanks to our continued strong performance and cost savings through our multi-year transformation program and the success and generation of significant cash flows. In addition, we see great opportunities to increase our primary production and develop our recycling business in the long term, as we can take advantage of these opportunities thanks to our track record of strategic expansion, our operational experience and our financial strength.”
Emirates Global Aluminum has paid some of its debts in advance at a value of 2.9 billion dirhams ($800 million) during the first half of 2023, as part of continuing to implement the company’s strategy to reduce indebtedness, strengthen its financial position and achieve future growth. The total debts of Emirates Global Aluminum that have been paid in advance so far have reached 9.4 billion dirhams (2.6 billion dollars) since mid-2021. The debts owed by Emirates Global Aluminum currently amount to 14.4 billion dirhams (3.9 billion dollars), while The Guinea Alumina Corporation has existing project financing of 2.3 billion dirhams ($614 million) to be paid in instalments. The company’s net debt-to-adjusted EBITDA ratio was 1.6x at the end of June 2023.
aluminum production
EGA’s production across the aluminum value chain was either in line with or slightly ahead of production in the first half of 2022, but below record performance in the second half of 2022 due to seasonal declines in production and planned maintenance.
EGA’s sales of cast metal increased by 1% to reach 1.32 million tons, compared to 1.31 million tons in the first half of 2022. In the second half of 2022, EGA sold 1.41 million tons. tons of cast aluminum. The number of the company’s customers around the world reached 383 customers during the first half of the year 2023. Sales of value-added or “high-quality aluminum” products decreased by 5%, reaching 1.02 million tons, compared to 1.07 million tons in the first half of the year. 2022 and 1.06 million tons in the second half of 2022. “High quality aluminum” accounted for 77% of total sales, compared to 82% in the first half of 2022 and 75% in the second half of 2022, with lower demand for extrusions. . The company has focused on improving the contribution of sales to EBITDA through sales of non-value-added products in global markets at strong premiums while maintaining or increasing its relative market share of “high quality aluminum” in key markets and sectors.
Domestic customer sales
In addition, the company’s sales to local customers increased to 148 thousand tons, representing 11% of total sales, which reflects the relatively strong performance of the UAE economy. In the first half of 2022, local sales reached 141 thousand tons, while in the second half of 2022, local sales reached 127 thousand tons. Alumina production at Al Taweelah refinery was in line with the first half of 2022, reaching 1.15 million tons, compared to 1.28 million tons in the second half of 2022. During the first half of 2023, the refinery was closed to conduct construction work.
