Emirates Global Aluminium H1 profit falls 66% to $533m

Emirates Global Aluminium

Net profit at Emirates Global Aluminium, the UAE’s largest non-oil industrial company and one of the world’s largest aluminium producers, tumbled 66 percent to AED2 billion ($533 million) in the first half of 2023.

This compared to AED5.9 billion ($1.6 bllion) in the first half of 2022.

Revenue declined 19.12 percent year on year to AED14.8 billion on lower product prices.

The adjusted Ebitda reached AED 4.2 billion in the year to June 2023, compared to AED7.6 billion a year ago.

The aluminium segment adjusted Ebitda margin stood at 27 percent, leading global industry peers.

The average realised London Metal Exchange price for its aluminium was $2,359 per tonne compared to $3,063 per tonne during H1 2022 and $2,392 per tonne during H2 2022.

Emirates Global Aluminium CEO Abdulnasser bin Kalban said that the company had “delivered solid financial results even as market conditions moderated from the significant volatility of recent years”.

“We will continue to be competitive in the second half, as we benefit from our multi-year drive to maximise our revenue and minimise our costs,” he added.

CFO Zouhir Regragui added that the company sees considerable opportunities both to grow its primary production and develop its business in recycling over the longer term.

“We are well placed within our sector to capitalise on these opportunities,” he said.

Emirates Global Aluminium made a corporate debt pre-payment of AED2.9 billion during the first half of 2023, continuing its deleveraging strategy to strengthen its balance sheet for future growth.

The company has pre-paid AED9.4 billion in total since mid-2021. The outstanding corporate debt is currently at AED14.4 billion.

Sales of cast metal increased by one percent to 1.32 million tonnes, compared to 1.31 million tonnes in the first half of 2022.

In the last half of 2022, Emirates Global Aluminium sold 1.41 million tonnes of cast metal. The company supplied 383 customers worldwide during the first half of 2023.