EGA 2016 full year net income increases 10 per cent to AED 2.1bn
Strong performance driven by record production and operational efficiencies
Financial highlights of 2016
- Net income of AED 2.1 billion, an increase of 10 per cent from AED 1.9 billion in 2015 due to record production and focus on cost control
- EBITDA of AED 5.0 billion, in line with 2015
- Revenue of AED 17.1 billion, a decrease of 9 per cent from AED 18.7 billion in 2015 as a result of lower global aluminium prices
Business highlights of 2016
- Record production of 2.5 million tonnes of hot metal (2015: 2.4 million tonnes)
- 82 per cent of metal sales (77 per cent in 2015) were value-added products sold to EGA’s diverse global customers
- Successful licensing of EGA’s proprietary smelting technology to Aluminium Bahrain (Alba), the first international licensing of industrial process technology from the UAE
- Significant milestones achieved on both the 12 million ton per annum bauxite export mine in the Republic of Guinea and the 2 million ton per annum alumina refinery in Al Taweelah as part of EGA’s strategic objective to expand its upstream business and secure key raw materials
- 36 per cent Emiratisation by end 2016, exceeding 35 per cent target
United Arab Emirates: Emirates Global Aluminium (EGA), the largest industrial company in the United Arab Emirates outside the oil and gas industry, today reported net income for 2016 of AED 2.1 billion, an increase of 10 per cent compared to 2015. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at AED 5.0 billion, in line with 2015.
EGA’s aluminium production during 2016 was a record 2.5 million tonnes of hot metal, an increase from 2015’s 2.4 million tonnes.
In 2016, 82 per cent of EGA’s production was value-added products that commanded higher premia than standard aluminium products, an increase from 77 per cent in 2015.
Revenue for 2016 was AED 17.1 billion, a decrease of 9 per cent from AED 18.7 billion in 2015 as a result of lower global aluminium prices.
EGA’s continuing focus on cost management and operational efficiencies contributed to the strong financial results.
Abdulla Kalban, EGA’s Managing Director and Chief Executive Officer said: “The hard work of EGA’s employees delivered strong financial performance in 2016 despite challenging conditions in the global aluminium market. This is a result of our focus on cost management, operational efficiencies, continuous improvement of our technology, and responsiveness to the needs of our customers around the world. I am pleased with the progress we have made in 2016 in strengthening EGA’s position in the industry and contributing further to the industrial diversification of the UAE.”
EGA owns and operates aluminium smelters in Jebel Ali in Dubai and Al Taweelah in Abu Dhabi. EGA’s production makes the UAE the fourth largest aluminium producing nation in the world.
During 2016, EGA made substantial progress in its strategic objective of expanding upstream in the aluminium value chain and internationally to create new revenue streams and secure strategic supplies for the UAE’s aluminium industry.
In June, EGA’s Board approved construction of a 12 million tonnes per annum bauxite mine (with future expansion potential) and associated export facilities in Kamsar in the Republic of Guinea in EGA’s first expansion into mining, managed through its subsidiary company Guinea Alumina Corporation (GAC).
There was significant construction progress on EGA’s first phase of its Al Taweelah alumina refinery during 2016, targeting a capacity of 2 million tonnes per annum of smelter grade alumina, with further expansion potential on its site adjacent to the Al Taweelah smelter.
EGA supplies aluminium to some 300 customers in over 60 countries worldwide.
Domestically EGA sold 262 thousand tonnes of aluminium to customers in the UAE in 2016, over 16 per cent more than the 225 thousand tonnes sold in 2015 and over 10 per cent of total production, contributing to the growth of the broader aluminium sector and serving as an engine for the continued economic diversification of the country.
EGA employs some 7,500 people in its UAE operations, and is the foundation of an aluminium ecosystem of around 22,000 further jobs across the country.
In 2016 EGA began supplying local customers in Al Taweelah with liquid metal via a dedicated hot metal road, reducing costs and environmental emissions.
In 2016 EGA earned licence fees for its technology for the first time following a successful bid to supply technology to Aluminium Bahrain. The agreement was the first time a UAE company has licensed its industrial technology internationally.
EGA has focused on innovation for over 25 years and has used its own technology in every expansion since the 1990s, achieving industry-benchmark levels in cell productivity and energy efficiency.
EGA is equally-owned by Mubadala Development Company and Investment Corporation of Dubai.All News