EGA announces net profit of Dhs7.4 billion in 2022

Emirates Global Aluminium (EGA) on Tuesday reported its strongest-ever financial results, announcing net profit of Dhs7.4 billion ($2.0 billion), up 34 per cent from Dhs5.5 billion ($1.5 billion) in 2021.

EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted Ebitda) for 2022 was up 37 per cent to a record Dhs12.4 billion ($3.4 billion), compared to Dhs9.0 billion ($2.5 billion) in 2021. EGA’s adjusted Ebitda margin was 36 per cent, one of the best amongst global industry peers. EGA delivered record production at every step of the aluminium value chain from mining to cast metal.

Bauxite exports from the Republic of Guinea rose 16 per cent to 14 million wet metric tonnes. EGA’s bauxite mining subsidiary, Guinea Alumina Corporation, contributed Dhs507 million ($138 million) to adjusted Ebitda.

Al Taweelah alumina refinery produced 2.43 million tonnes of alumina, up 5 per cent and meeting 47 per cent of EGA’s total alumina needs, and making an Dhs919 million ($250 million) contribution to EGA adjusted Ebitda.

EGA’s hot metal production recorded 2.65 million tonnes. During 2022, EGA passed 40 million tonnes of hot metal produced since the start-up of Jebel Ali in 1979. EGA cast this hot metal into a record 2.73 million tonnes of finished products. Value-added products, or ‘premium aluminium’, was 78 per cent of sales, with volume increasing slightly from 2021.

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.

“The immediate outlook for aluminium remains under pressure due to its close correlation to the global economy’s health. More broadly, the prospects for EGA and our sector are very strong due to aluminium’s role in decarbonisation economy-wide. EGA will capitalise on this significant opportunity.”