EGA reports first half adjusted EBITDA of $2.1 billion

Emirates Global Aluminium (EGA) reports a record first half (H1) 2022 adjusted earnings before interest, tax, depreciation and amortization (adjusted EBITDA) of AED 7.6 billion (US$ 2.1 billion) , while the first half of 2021 was AED 3.5 billion.

The company reported a net profit of AED5.9 billion ($1.6 billion), compared with AED1.7 billion ($473 million) in the first half of 2021. EGA’s net profit for the first half of 2022 surpassed that for the full year of 2021 (AED 5.5 billion, $1.5 billion) in itself a record year for the company.

Revenue in the first half was AED18.3 billion ($5 billion), compared to AED10.8 billion ($2.9 billion) in the first half of 2021.

Aluminium division EBITDA margin reached 41%, compared to 32% in the first half of 2021, ahead of major global peers.

Following the end of the first half of 2022, EGA prepaid corporate debt of AED 2.9 billion ($800 million), continuing to deleverage to strengthen the company’s balance sheet for EGA’s future corporate journey.

After the first half ended, EGA paid shareholders an interim dividend of AED 2.2 billion ($600 million).

Sales of cast metal increased by 11% to 1.31 million tonnes, compared to 1.18 million tonnes in the first half of 2021, as EGA implemented production creep programs and mitigation measures to address global logistics challenges. EGA supplies metals to more than 400 customers in more than 50 countries.

Sales of value-added products or “premium aluminium” rose 5% to 1.07 million tonnes from 1.02 million tonnes in the first half of 2021. “Premium aluminum” accounted for 82% of total metal sales compared to 86% in the first half of 2021, with the company focused on optimizing sales contribution to EBITDA amid highly volatile alloy metal prices.

Abdulnasser Bin Kalban, CEO of EGA, said: “After a record performance in 2021, I noticed that EGA can still do better and we have indeed improved operational performance across the value chain from mining to outbound logistics of finished metals. This allows us to take advantage of strong market conditions. Our net profit for the first half of the year exceeded our net profit for the full year of last year.

“In the first half of the year, we worked hard to remove operational bottlenecks, optimize our customers and product mix to maximize revenue, control costs effectively, and lay the foundation for future growth. Regardless of how the global aluminum market evolves, we will continue to focus on serving our The industry offers competitive returns.”

Zouhir Regragui, Chief Financial Officer of EGA, said: “Our success means we have high cash generation capabilities in strong market conditions, allowing us to deliver an extraordinary return to shareholders with an interim dividend of $600 million and continue to strengthen Our Balance Sheet The next stage in our corporate journey.

“Aluminum demand is closely tied to the health of the global economy. The economic outlook for the rest of the year is uncertain, but market conditions may not be as favorable as the first half of the year. We will continue to focus on what we control – operational excellence, through our marketing strategy Maximizing the value of our production, controlling our overhead and closely managing our working capital – continue to deliver superior returns compared to our industry.” – arab trade news agency