EGA's net profit rises 34% to AED 7.4 billion in 2022
Emirates Global Aluminium (EGA) posted a record net profit of AED 7.4 billion last year, up 34 per cent from AED 5.5 billion in 2021, according to the company's financial results.
The company said in a statement today that adjusted earnings before interest, tax, depreciation and amortization amounted to AED 12.4 billion during 2022, an increase of 37% compared to AED nine billion profits achieved by the company in 2021.
The adjusted EBITDA margin was 36%, representing one of the highest margins among aluminium companies globally.
EGA achieved record production at every stage of the aluminium value chain from mining to metal.
Bauxite exports from Guinea rose 16 percent to 14 million metric tons of wet.
Guinea Alumina Corporation, EGA's bauxite mining company, contributed AED 507 million to EBITDA of AED <> million.
Al Taweelah alumina refinery produced 2.43 million tonnes of alumina, an increase of 5 per cent while meeting 47 per cent of EGA's total alumina requirements, and contributed to EBITDA of AED 919 million.
EGA's molten metal production reached record levels of 2.65 million tonnes.
In 2022, the company's molten metal production exceeded 40 million tonnes since the Jebel Ali smelter began operation in 1979.
The Company's net debt to adjusted EBITDA ratio was 1.1 at the end of 2022, compared to 2.4 at the end of 2021, as the Company continues to deleverage to strengthen its financial position.
The company paid a dividend of AED 3.7 billion, consisting of an interim dividend of AED 2.2 billion in July and a final dividend of AED 1.5 billion after the end of 2022, making the 2022 dividend the largest in EGA's history.
EGA's revenues increased by 36 per cent to AED 34.6 billion, while cash from operating activities increased by 70 per cent to AED 12.7 billion.
EGA's Chief Executive Officer, Abdul Nasser Bin Kalban, said: "EGA has delivered its strongest financial results since inception with the highest standards in terms of employee safety, operational excellence, costs and a strong relationship with our customers around the world.
"We expect demand for aluminium to grow worldwide over the next two decades due to the critical role that this metal contributes towards sustainability and carbon emissions."
Zuhair Al Rajraji, Chief Financial Officer at EGA, said: "We are proud of these results, which reflect EGA's ability to capitalise on market opportunities and create value, and are testament to the success of the transformation programme, which has delivered additional value savings of around $1.7 billion in three years.
"We expect global aluminium demand to grow by 1-2% in 2023, and much more in the coming decades, with the bulk of new demand for secondary aluminium and primary aluminium being low-carbon, which will be a priority.