EGA Reports 34% Profit Surge Amid Operational Challenges and Strategic Growth
Emirates Global Aluminium (EGA) has delivered a strong financial performance for the first half of the year, with adjusted net profit climbing 34% to Dh2.46 billion. This impressive growth was primarily driven by favorable market conditions, including a rise in average London Metal Exchange aluminium prices to $3,382 per tonne, alongside disciplined cost-cutting measures and stronger regional premiums. While revenue dipped 10% to Dh13.54 billion due to lower sales volumes, the company’s focus on efficiency allowed its adjusted EBITDA margin to expand significantly to 33.3%. In light of these results, the board has approved an interim dividend of Dh1.73 billion, rewarding shareholders with a 70% payout of the adjusted net income.
Navigating the aftermath of the March incident at the Al Taweelah site remains a priority, though the company is making steady progress in its restoration efforts. As of mid-August, 18% of the reduction cells have been brought back online, and the alumina refinery has successfully returned to 50% of its previous capacity. To manage logistics following the disruption, EGA successfully pivoted to alternative export routes, ensuring that customer commitments were met despite shipping constraints. Looking ahead, the firm is aggressively pursuing its global expansion, including a major joint venture in Oklahoma and the strategic acquisition of Italy’s Eco Green, which will bolster its recycling footprint and solidify its position as a global leader in the aluminium industry.