EGA 2017 net income surges 59% to AED 3.3 billion ($900 million)
Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas and the world’s largest ‘premium aluminium’ producer, today reported net income for 2017 of AED 3.3 billion ($900 million), a 59% increase on 2016.
EGA’s revenue increased to AED 20.5 billion ($5.6 billion) in 2017 compared to AED 17.1 billion ($4.6 billion) in 2016.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation stood at AED 6.7 billion ($1.8 billion), an increase of 31% from AED 5.1 billion ($1.4 billion) in 2016. EGA’s adjusted EBITDA margin for 2017 was 32%. (30% in 2016)
Record cast metal production of 2.6 million tonnes (2016: 2.5 million tonnes) and a continuing focus on cost control and operational efficiency contributed to EGA’s strong performance, amid favourable conditions in the global aluminium market.
EGA’s sales of value-added products, which attract considerably higher premiums over LME prices than those achieved by standard aluminium and enable EGA to maximise the value of its production, increased by 87 thousand tonnes in 2017 to 2.1 million tonnes, representing 82% of total sales.
EGA sold value-added products to 336 customers in 54 countries in 2017 and is the world’s biggest ‘premium aluminium’ producer.
EGA distributed AED 2 billion ($546 million) to its shareholders in 2017 compared to AED 1.2 billion ($340 million) in 2016.
His Excellency Khaldoon Khalifa Al Mubarak, Chairman of EGA, said: “Emirates Global Aluminium is one of the UAE’s most important industrial giants and a world leader in the global aluminium sector. With a strong customer base worldwide, a seasoned management team and a solid financial foundation, EGA is well-positioned to benefit from the increasing demand for aluminium in this era of growth and innovation.”
Abdulla Kalban, EGA’s Managing Director and CEO, said: “Our industry-leading operating margins strengthened further in 2017, demonstrating the success of our business model, our technological and structural cost advantages, and our superior product mix as the world’s largest producer of value-added products. One area of particular success in 2017 stems from our development over more than 25 years of our own energy efficient smelting technology. All our reduction cells run on EGA technology, reducing costs and environmental emissions.
“We also continued to progress well in 2017 on our strategic growth projects that are expanding our business upstream to secure the natural resources we need. Once complete, Al Taweelah alumina refinery in Abu Dhabi and GAC, our bauxite mining project in the Republic of Guinea, will deliver value for decades to come as well as create further long-term growth opportunities for EGA.”
EGA’s safety performance compares favourably to global industry benchmarks. EGA’s Total Recordable Injury Frequency Rate in 2017 was 1.53 per million hours worked, compared to 2.16 in 2016. The global average Total Recordable Injury Frequency Rate in the aluminium industry in 2016 was 4.0 per million hours worked, according to the International Aluminium Institute.
EGA recorded one Lost Time Injury in 2017 with a Lost Time Injury Frequency Rate of 0.04 per million hours worked, compared to 0.28 in 2016.
Work on Al Taweelah alumina refinery is currently 76% complete and the first alumina is expected during the first half of 2019. Once full ramp-up is achieved, Al Taweelah alumina refinery will meet 40% of EGA’s alumina requirements, helping to secure the competitive supply of the feedstock for aluminium smelters. More than 10,000 people are currently working on the project, which has a total budgeted project cost of approximately $3.3 billion.
The Guinea Alumina Corporation bauxite mine project is currently 37% complete, with first bauxite exports expected during the second half of 2019. EGA’s Guinea project, which has a total budgeted project cost of approximately $1.4 billion, will be amongst the world’s largest and highest quality bauxite mines, creating a new revenue stream for EGA.