EGA profit surges 59%

ABU DHABI / WAM

Emirates Global Aluminium (EGA) on Tuesday reported net profit for 2017 of AED3.3 billion ($900 million), a 59 percent increase on 2016. EGA’s revenue increased to AED20.5 billion in 2017 compared to AED17.1 billion in 2016. Adjusted EBITDA stood at AED6.7 billion, an increase of 31 percent from AED5.1 billion in 2016. EGA’s adjusted EBITDA margin for 2017 was 32 percent.
Record cast metal production of 2.6 million tonnes and a continuing focus on cost control and operational efficiency contributed to EGA’s strong performance, amid favourable conditions in the global aluminium market.
EGA’s sales of value-added products, which attract considerably higher premiums over LME prices than those achieved by standard aluminium and enable EGA to maximise the value of its production, increased by 87,000 tonnes in 2017 to 2.1 million tonnes, representing 82 percent of total sales. The organisation sold value-added products to 336 customers in 54 countries in 2017 and is the world’s biggest ‘premium aluminium’ producer.
Khaldoon Khalifa Al Mubarak, Chairman of EGA, said, “Emirates Global Aluminium is one of the UAE’s most important industrial giants, and a world leader in the global aluminium sector. With a strong customer base worldwide, a seasoned management team and a solid financial foundation, EGA is well-positioned to benefit from the increasing demand for aluminium in this era of growth and innovation.”
Abdulla Kalban, EGA’s Managing Director and Chief Executive Officer, said, “Our industry-leading operating margins strengthened further in 2017, demonstrating the success of our business model, our technological and structural cost advantages, and our superior product mix as the world’s largest producer of value-added products. 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 EGAtechnology, reducing costs and environmental emissions.

Mubadala may sell shares in 3 firms this year
Bloomberg

Abu Dhabi’s Mubadala Investment Co. may sell shares in as many as three companies, including the largest aluminum producer in the Middle East — EGA — this year as IPO activity picks up in the United Arab Emirates. “In 2018 Emirates Global Aluminium will be IPOed and potentially another one or two,” Khaldoon Al Mubarak told in an interview in Abu Dhabi on Tuesday. He declined to disclose the identity of the two companies.
The potential offerings would follow Emaar Properties PJSC raising $1.3 billion from the IPO of its development unit last year and Abu Dhabi National Oil Co. raising $851 million from the share sale in its subsidiary. Emirates National Oil Co., the government-owned refiner in Dubai, has held discussions with advisers for a potential IPO of its fuel-retailing unit, people familiar with the matter said last month.
Emirates Global Aluminium is jointly owned by Mubadala and the Investment Corp. of Dubai. The company will take a decision on the size of the offering in a couple of weeks and hasn’t yet chosen an exchange for listing, Khaldoon said.