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EGA posts net income of AED 1.2 billion for the year ended 2018

Metal News - Published on Wed, 13 Mar 2019

Image Source: Emirates 24/7
World’s largest ‘premium aluminium’ producer continues to increase production and sales of value-added products, maximising the value of its production. Mr Abdulla Kalban, EGA’s Managing Director and Chief Executive Officer, said that “The aluminium industry is going through a challenging period with higher prices for our raw materials and lower benchmark prices for finished metal. This is reflected in our financial performance for 2018, although EGA achieved record production and value-added product sales and continued our strong focus on cost control and operational efficiency.”

Financial highlights of 2018

1. Net income of AED 1.2 billion ($325 million), a decrease of 64 per cent from AED 3.3 billion ($900 million) in 2017, driven by higher raw material prices

2. Adjusted EBITDA of AED 4.4 billion ($1.2 billion), a decrease of 35 per cent from AED 6.6 billion ($1.8 billion) in 2017

3. Adjusted EBITDA margin of 18 per cent compared to 32 per cent in 2017

4. Revenue of AED 23.5 billion ($6.4 billion), an increase of 14 per cent from AED 20.5 billion ($5.6 billion) in 2017 driven by higher sales volume, higher benchmark price and product premiums and higher volume of value-added products

5. Distribution to shareholders of AED 1.1 billion ($300 million) Operational highlights of 2018

Operational Highlights of 2018

1. Record production of 2.64 million tonnes of cast metal, exceeding 2017’s 2.60 million tonnes and retaining EGA’s position as the third largest producer of primary aluminium in the world (excluding China)

2. Value-added products or ‘premium aluminium’ sold to 340 customers in 53 countries and increased by 161 thousand tonnes, to a record 2.3 million tonnes. EGA continues to be the world’s largest ‘premium aluminium’ producer

3. Sales to local customers increased to 275 thousand tonnes (2017: 268 thousand tonnes) and continues to represent about 10 per cent of total production

4. Strong progress on delivery of strategic upstream growth projects: Al Taweelah alumina refinery in Abu Dhabi and the Guinea Alumina Corporation bauxite mining project in the Republic of Guinea. Both projects are expected to start production in 2019

5. Aluminium Bahrain’s new expansion project, which uses EGA developed smelting technology, began production, in a milestone for the development of a UAE knowledge economy.

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Posted By : Rabi Wangkhem on Wed, 13 Mar 2019
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