Emirates Global Aluminium (EGA), the world’s largest ‘premium aluminium’ producer, has seen its first-half (H1) net profit fall to AED1.84 billion ($500 million), compared to AED1.96 billion in H1 2023. 

 

EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted EBITDA) was AED4.20 billion compared to AED4.15 billion in H1 2023.

 

EGA’s aluminium segment adjusted EBITDA margin was 27.5%, compared to 26.9% in the first half of 2023, leading amongst global industry peers.

 

Average realised LME price $2,303 per tonne

EGA’s average realised London Metal Exchange aluminium price was $2,303 per tonne, compared to $2,359 per tonne in the first half of 2023. The benchmark London Metal Exchange aluminium price rose in the second quarter including on further restrictions on international trade in Russian metal, and geopolitical tensions. Alumina prices increased towards the end of May, mainly driven by supply disruptions in Australia and India.

 

In May, EGA completed the acquisition of Leichtmetall, a European specialty foundry. This was EGA’s first strategic acquisition since the formation of the company through the merger of Dubai Aluminium and Emirates Aluminium in 2014.

 

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “EGA continues to deliver competitive financial performance throughout the economic cycle, through our focus on operational excellence, controlling our costs, and our long-term commercial relationships with our global customers."

 

Leichtmetall acquisition

“The first half of 2024 saw our acquisition of Leichtmetall and progress in the development of our recycling plant in the UAE, important first steps in our strategy to grow EGA to meet expanding global demand for low carbon primary and recycled aluminium over the decades ahead. I look forward to further steps before the end of the year."

 

“However, safety is our first priority at EGA, and our achievements mean little in the context of a colleague losing his life on our Jebel Ali site. We have investigated this incident thoroughly with an independent third-party expert and shared the findings with our industry. On behalf of everyone at EGA, I again express my deep condolences to our colleague’s family.”

 

Mohamed Almarzooqi, Acting Chief Financial Officer of Emirates Global Aluminium, said: “Our competitive operational and financial performance has enabled us to further improve our leverage position while delivering great returns for our shareholders. This means we are in a strong position to capitalise on the opportunities from the long-term growth of demand for low carbon primary and secondary aluminium.”

 

EGA sold 1.30 million tonnes of cast metal in H1 2024 to 411 customers in 57 countries, compared to 1.32 million tonnes in H1 2023.

 

Value-added products

Some 82% of metal sales were value-added products or ‘premium aluminium’ compared to 77% in the first half of 2023. EGA focuses on maintaining or growing relative market share in ‘premium aluminium’ in key markets and segments, while also optimising the EBITDA contribution of VAP sales. During the period, demand for billets was up 18% year-on-year.

 

EGA sold 149 thousand tonnes of metal to local customers in the UAE, compared to 148 thousand tonnes in the first half of 2023. EGA’s metal supply supports the development of downstream industries in the UAE, further enhancing EGA’s contribution to the achievement of the UAE’s Operation 300bn industrial growth strategy.

 

EGA produced 1.34 million tonnes of hot metal at its smelters in Al Taweelah and Jebel Ali, compared to 1.32 million tonnes in H1 2023. Heavy rains in April led to production opportunity losses of less than five thousand tonnes. In April, 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 three thousand tonnes of hot metal. 

 

Al Taweelah alumina refinery produced 1.22 million tonnes of alumina in H1 2024, compared to 1.15 million tonnes in H1 2023.

 

Bauxite mining

EGA’s bauxite mining subsidiary Guinea Alumina Corporation exported 7.19 million tonnes of bauxite, the ore from which aluminium is derived, compared to 6.87 million tonnes in H1 2023.

 

During the first half of 2023, EGA made progress on the development of the UAE’s largest aluminium recycling plant, in Al Taweelah. The project is progressing ahead of plan with first hot metal expected in 2026. On completion, the recycling plant will have a capacity of 170 thousand tonnes of secondary billets per year.

 

In June, EGA published a Green Finance Framework to support decarbonisation projects and initiatives that contribute to the transition to a low-carbon economy. The acquisition of Leichtmetall earlier in the period was fully funded with EGA’s first green loan facility.--TradeArabia News Service