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ABU DHABI/ WAM
Emirates Global Aluminium (EGA), the biggest industrial company in the United Arab Emirates outside oil and gas, today reported competitive financial results for 2023, with production records at every step of the company’s value chain.
Despite the global aluminium market retreating from the record highs of 2022, EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted EBITDA) for 2023 were AED7.7 billion ($2.1 billion).
EGA maintained its total dividend payout to shareholders at AED3.7 billion ($1 billion) for 2023, equal to 2022’s record dividends. EGA’s revenue was AED29.5 billion ($8.0 billion) on lower global benchmark aluminium prices offset by increased production and higher global bauxite prices. This compared to AED34.6 billion ($9.4 billion) in 2022.
EGA’s net profit was AED3.4 billion ($937 million), compared to AED7.4 billion ($2.0 billion) in 2022. EGA’s exports of bauxite and production of alumina and hot metal were all the highest-ever. Bauxite exports from the Republic of Guinea increased to 14.1 million wet metric tonnes, from 14 million tonnes in 2022. Some 1.2 million tonnes of bauxite was supplied to EGA in the UAE, with the balance sold to external customers making EGA one of the world’s largest merchant bauxite suppliers.
Cash generated from operating activities was AED7.9 billion ($2.2 billion), compared to AED12.7 billion ($3.4 billion) in the previous year.
EGA’s Najah transformation programme (‘Najah’ is an Arabic word meaning ‘success’), delivered AED2.6 billion ($696 million) in recurring cost and revenue improvements during 2023. Since the programme’s launch in 2020, Najah has delivered AED8.8 billion ($2.4 billion) in EBITDA improvements.
EGA’s smelting segment adjusted EBITDA margin was 25 percent (2022: 35 percent), leading major industry peers.
Al Taweelah alumina refinery continued to creep production beyond its nameplate capacity, with 2.48 million tonnes of alumina produced in 2023 (2022: 2.43 million tonnes). Al Taweelah alumina refinery met 48 percent of EGA’s total alumina needs in the year.
EGA’s smelters at Al Taweelah and Jebel Ali produced 2.66 million tonnes of hot metal, compared to 2.65 million tonnes in 2022. Average metal purity was the highest ever. EGA produced 205 thousand tonnes of super high purity and high purity metal during the year, high-value products required for industries including aviation and electronics.
EGA’s total metal sales were a record 2.75 million tonnes (2022: 2.72 million tonnes). 76 percent of EGA’s metal sales were value-added products (78 percent in 2022). EGA supplied some 423 customers in over 50 countries EGA metal sales included 293 thousand tonnes supplied to local customers in the UAE, up from 268 thousand tonnes in 2022 and reflecting the relative strength of the UAE economy.
The average realised London Metal Exchange price for EGA’s metal was $2,264 per tonne, compared to $2,715 per tonne in 2022. The global aluminium benchmark price is closely correlated to the health of the global economy.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said, “In 2023, EGA again delivered strong performance in what we control – the safety of our people, operational excellence, our costs, and our long-term commercial relationships with our global customers. This enabled us to continue to deliver competitive financial results compared to our global peers, and record-equalling dividends for our shareholders.
“Global aluminium prices were lower than in 2022, amid a less robust economy. However, prices remained higher than historic annual averages for the eight years before the pandemic.
“We believe the outlook for aluminium in the long term is very positive, because our metal is an essential material for the development of a more sustainable society. Global aluminium demand is expected to grow significantly over the coming decades, particularly for low-carbon and recycled metal. EGA is well set to capitalise on these growth opportunities and further strengthen our position in the global aluminium industry.”