Emirates Global Aluminium profit down as prices weaken

EGA/X

Net profits at Emirates Global Aluminium (EGA), the biggest non-oil industrial company in the UAE, fell 6 percent to AED1.84 billion ($500 million) in the first half of 2024 from AED1.96 billion a year ago, driven by lower product prices.

The average realised London Metal Exchange aluminium price declined 2 percent year on year to $2,303 per tonne in the first six months.

However, the benchmark aluminium price rose in the second quarter amid growing restrictions on international trade in Russian metal, and geopolitical tensions.

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Alumina prices increased towards the end of May, mainly driven by supply disruptions in Australia and India. 

The company sold 1.30 million tonnes of cast metal, down 2 percent year on year,  in the first six to 411 customers in 57 countries.

Nearly 82 percent of metal sales were value-added products or “premium aluminium”.

EGA sold 149,000 tonnes of metal to local customers in the UAE, compared to 148,000 tonnes a year ago.  

During the first half, the company produced 1.34 million tonnes of hot metal at its smelters in Al Taweelah and Jebel Ali, compared to 1.32 million tonnes in the same period last year.

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Heavy rains in April led to what the company referred to as ‘production opportunity losses’ of around 5,000 tonnes.

In addition, the H-class gas turbine at Jebel Ali entered a forced shutdown, which was resolved in July. The unavailability of this turbine reduced production in the first half by 3,000 tonnes of hot metal.  

Work on the country’s largest aluminium recycling plant in Al Taweelah is moving ahead, with first hot metal expected in 2026.

On completion, the recycling plant will have a capacity of 170,000 tonnes of secondary billets per year.

In May, EGA completed the acquisition of Leichtmetall, a European specialty foundry, its first acquisition since its formation in 2014.