Leading metallurgical firm, Emirates Global Aluminium (EGA), which is also the biggest industrial company in the United Arab Emirates (UAE) outside oil and gas sector, has reported a record net profit in 2022.
The aluminium producer has adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) for 2022 was up 37% to a record AED 12.4 billion ($3.4 billion), compared to AED 9 billion ($2.5 billion) in 2021, the company wrote in a statement.
Higher aluminium prices helped EGA to register a record AED 7.4 billion ($2 billion) profit, up 34% from AED 5.5 billion ($1.5 billion) in 2021,” the statement noted.
The company claims that its adjusted EBITDA margin was 36%, one of the best amongst global aluminium industry peers. It has delivered record production at every step of the aluminium value chain from mining to cast metal.
According to the company, bauxite exports from the Republic of Guinea were up 16% to 14 million wet metric tonnes. EGA’s bauxite mining subsidiary, Guinea Alumina Corporation, contributed AED 507 million ($138 million) to adjusted EBITDA.
Al Taweelah alumina refinery produced 2.43 million tonnes of alumina, up 5% and meeting 47% of EGA’s total alumina needs, and making an AED 919 million ($250 million) contribution to EGA adjusted EBITDA.
EGA’s hot aluminium production was a record 2.65 million tonnes. During 2022, EGA passed 40 million tonnes of hot metal produced since the start-up of Jebel Ali in 1979.
The company’s average realised London Metal Exchange price for aluminium was $2,715 per tonne. The benchmark LME daily price reached a decade-high in March of $3,985 per tonne, before retreating to a low of $2,080 in September.
Commenting on the development, Abdulnasser Bin Kalban, chief executive officer of EGA, said, “At EGA, we delivered our best-ever results by focusing throughout the year on what we control – the safety of our people, operational excellence, our costs, and our commercial relationships with our long-term global customers. Our performance demonstrated our resilience and strength at every step of the value chain.”
During the year, EGA, Abu Dhabi National Energy Company PJSC (TAQA), Dubal Holding and Emirates Water and Electricity Company (EWEC) announced a strategic initiative that would expand clean energy development, progress power assets and generation optimisation, and decarbonise EGA’s aluminium production.
Progress was made during 2022 on the continuing detailed negotiations for this initiative, which will then require regulatory approval, EGA said.